HSBC increases average Gold Price estimates

HSBC announced today (December 8th) that it has lifted its Gold Price forecasts for 2009, 2010 and 2011, Reuters reports.

The world's largest financial services group is now predicting that the yellow metal will average $990 per ounce this year, up from a previous estimate of $925 per ounce.

In addition, its 2010 view has been revised from $950 per ounce to $1,100 per ounce, while it now pegs gold at an average of $975 per ounce in 2011, rather than $825 per ounce.

"The combination of inflation and currency hedge buying are key factors driving gold prices," the company noted in a statement quoted by the news provider.

Those comments were strongly backed up last week by Andrey Kryuchenkov, an analyst from the investment banking arm of major Russian institution VTB Bank.

In an interview with AFP, he explained that the ongoing bearing sentiment towards the US dollar indicates that Gold Prices still have scope to move considerably higher.

"The case for gold remains bullish, with investment demand yet to show signs of abating," he told the news agency.

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