Gold News

Stagflation 'to push up gold prices further'

The founder of one of the biggest mining firms in Russia has predicted that possible global stagflation will push gold prices past the $1,000 per ounce mark later this year.

Peter Hambro, executive chairman of Peter Hambro Mining, said that if he held US dollars gold bullion "would look very attractive" right now, the Telegraph reports, underlining the strong position that those with gold investments may be in at the moment.

He noted that while the Federal Reserve has made an attempt to rescue the economy by slashing rates, investors look set to seek the safe haven of gold anyway.

Meanwhile, securities firm Morgan Stanley has also voiced the opinion that gold prices will breach $1,000 an ounce in 2008 - reflecting further some experts' confidence in the yellow metal as an alternative investment to stocks and shares.

On average, the "old friend" of gold is likely to average about $950 this year and $1,000 in 2009, the Times of India cites research analysts Hussein Allidina and Jeremy Friesen as saying.

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