Gold News

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, 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."

For the very best Gold Prices - live online - plus secure storage of your physical property in Zurich, Switzerland for one-third the cost of an exchange-traded gold fund, click through and register with BullionVault now...


See all articles by Gold Bug here.

Please Note: All articles published here are to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it. Please review our Terms & Conditions for accessing Gold News.

Follow Us

Facebook Youtube Twitter LinkedIn



Market Fundamentals