HSBC increases Gold Price view for 2009, 2010 and 2011
HSBC revealed yesterday (August 5th) that it has increased its Gold Price prediction for the remainder of 2009, Reuters reports.
James Steel, chief commodities analyst at Europe's largest bank, confirmed that he now puts the yellow metal at an average of $925 per ounce, up from a previous estimate of $875 per ounce.
Furthermore, he forecasted that gold will trade at an average of $950 per ounce in 2010 - up from $875 per ounce - while also increasing his 2011 estimate from $725 per ounce to $825 per ounce.
Explaining the decision, Mr. Steel noted that Gold Investment demand looks set to remain strong on a combination of US dollar weakness, inflation fears and dwindling mine production.
He told the news provider: "Concerns that quantitative easing will lead to higher inflation have driven investor demand for gold."
An even more bullish view on the future of gold prices was outlined last week by Paul Tustain, who founded BullionVault.com, one of the UK's leading online Gold Bullion dealers.
He explained that most of his company's customers are not confident about a quick economic recovery and are placing their money in gold because they feel the price could rise as high as $2,000 per ounce.
"Our experience right now is that the typical private investor buying gold does not trust any 'green shoots' of recovery," he said in an interview with the Daily Telegraph.
"They believe that strong house prices and cheap credit are a thing of the past and they are not convinced by any equity market recovery, but that there is better to come from gold, even up to $2,000 an ounce."
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