Gold News

Morgan Stanley raises gold price forecast

A leading US investment bank has today (January 21st) announced that it is increasing its gold price forecasts for this year and next year, according to Reuters.

International financial services company Morgan Stanley confirmed that it now sees gold prices at $900 per ounce in 2009 on average (up from $750) and $1,000 per ounce in 2010 on average (up from $825).

The company justified its decision by claiming that safe-haven demand for the yellow metal is on the rise as investors look for a store of wealth as turmoil in the financial markets continues.

The news provider quoted the bank as commenting: "Gold prices are likely to be higher by year-end in the context of aggressive monetary stimulus and falling confidence in paper money."

Top precious metals consultancy GFMS painted an even more bullish picture last week when it predicted that gold prices will break their all-time high mark of $1,030 per ounce in the first half of this year.

Chairperson Philip Klapwijk noted in a new report entitled 'Gold Survey 2008 - update 2' that the impact of the "extraordinary monetary and fiscal policies" undertaken by governments around the world will soon boost gold.

"I'm sure a strong rally is going to emerge," he said.

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