Gold News

Gold prices 'will surpass early-2008 highs'

Elite market technical chartist and gold speculation company Zeal LLC has predicted that gold prices will move on to surpass the highs witnessed earlier this year.

Gold plunged by around $190 per oz between mid-July and mid-August, leading many observers to claim that the bull period has come to a grinding halt.

However, Scott Wright, from Zeal, has questioned why investors are concerned by the $800 per oz level as gold reached $850 on January 1st for the first time in 28 years.

In a report on entitled 'Gold Production and Reserves: Stage Two', he said: "From a strategic perspective gold is in fine technical shape. It was just about a year ago that it launched from $650 into one of its most powerful uplegs bull to date that saw it briefly eclipse $1,000 in March.

"And while gold seems to be exhibiting gut-wrenching volatility, it has been consolidating on the high side of this most recent upleg and is likely positioning itself to launch into a glorious new upleg that I suspect will surpass the early-2008 highs."

Ian Henderson, who manages around $5 billion at JP Morgan's Global Natural Resources Fund, suggested last week the time was right for gold investment as mines cannot afford new explorations.

He added that gold bullion prices would need to rise by 20 per cent in order to make new investment projects financially viable.

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