LBMA delegates expect gold price rises until November 2009
A poll of leading traders, analysts and industry officials conducted today (September 30th) has revealed that the majority believe gold prices will climb by six per cent in the coming year.
The dignitaries, questioned for their views at the London Bullion Market Association (LBMA) in Kyoto, Japan, claimed that the price will hit $958.60 by the end of November 2009.
The survey was conducted in the aftermath of the rejection of the Paulson and Bush $700 billion bailout plan for the financial industry in Congress by US lawmakers.
Although the results were more bullish than a similar snap poll carried out on Monday, they also highlight just how uncertain even the most well-informed industry figures are about the future.
Fifty-six per cent of the delegates claimed that the crisis will have subsided by next year, while a quarter expected little change and 62 per cent thought that the dollar would be weaker, which would be good news for gold investment.
Indeed, panicking investors rushed to gold overnight following the announcement of the rejection of the bailout plan and with more turmoil expected as a result, gold prices could move steadily higher over the coming months.
As Subodh Gupta, a research analyst at Anand Rathi Commodities, explained: "Investment demand is expected to support gold prices and we remain bullish on gold prices from long-term perspective."
The LBMA predicted at last year's conference in Mumbai that gold prices would rise to $843.70 an ounce by September 2008 - an estimate which proved to be close to the current price of $901 per ounce.
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