ScotiaMocatta: Gold Prices to hit $1,400/oz in 2010

ScotiaMocatta predicted yesterday (October 22nd) that Gold Prices could rise as high as $1,400 per ounce next year, Reuters reports.

In a new research note, the precious metals division of the Bank of Nova Scotia - which is the third-largest bank in Canada - claimed that a floor of $850 per ounce will be established.

However, it also explained that significant gains could be made in 2010 as investors decided to Buy Gold for its ability to provide a store of wealth in tough economic times.

"Gold is going through a very interesting time, but there are a multitude of factors influencing the price, some of which are quite contradictory, such as the presence of deflation and the fear of inflation," said the note, according to the news provider.

"We also have an uneasy feeling that after the near catastrophic events seen over the past 12 months, the sharp recovery seen since March seems too good to be true, and for that reason it probably is."

The group added that any additional indications of trauma in the financial markets could send Gold Prices shooting upwards.

Meanwhile, Barclays Capital also sounded a positive note for anyone with a Gold Investment last week, stating that "prospects for a run at $1,500 should not be underestimated".

The prediction comes after JP Morgan and Chase upped its 2010 average gold price forecast from $950 to $1,006 per ounce, while Deutsche Bank - the largest bank in Germany - increased its estimate by 32 percent to $1,150 per ounce.

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