Gold prices 'to soar in 2009'

The price of gold bullion is likely to rise in 2009 based on economic uncertainties.

This is according to analysts at the seventh annual Dow Jones Indexes Commodity Outlook, who provided market outlook after it was revealed that the Commodity Total Return index is up by 12.01 per cent.

David Hightower, president of the Hightower report in Chicago, said that he expects a global recession and that food prices will push up gold prices.

"Soaring energy and food prices are a forgone conclusion that realistically can't be reversed without a global recession," he commented.

Meanwhile, Charles Nedoss of Peak Trading - a commodity futures broker also in Chicago - said that gold bullion will continue to be used as a hedge against inflation and as an alternative to currencies.

Although gold prices have not yet reached the record levels of $1,000 an ounce and above seen in March, they continue to stay above ranges that were seen as the norm for the past two decades.

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