JP Morgan analyst predicts strong gold price recovery in 2008

A leading figure at top analysts JP Morgan Chase and Co has predicted that gold prices will be rejuvenated in the remainder of 2008 as the Indian wedding season arrives.

The company conducted a study which revealed that the wedding and festival season in India - the world's biggest gold bullion buyer - has seen gold boosted in each of the past six years.

In an admission which will alert anyone looking to make a gold investment, the report showed that the gold price has risen by an average of 10.1 per cent between September and December every year since 2002.

Brendan Lewis from JP Morgan said: "We have undertaken an analysis to determine whether speculation surrounding the effect of the Indian wedding season is real, or simply an urban legend.

"Our analysis indicates that the Indian wedding and festival season has had a positive effect on the gold price since 2002.

"This suggests that we could see a strong recovery in the gold price in the last four months of 2008."

Those sentiments were echoed recently by major bank UBS, which claimed that gold may climb above $900 per ounce in the next three months as demand from investors continues to grow.

Jonathan Barratt, managing director at Commodity Broking Services, added: "We should see prices stabilise and move higher. This is a seasonal low."

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