Gold News

Top fund manager sticks to gold price prediction

AAA-rated star US equity manager Francois Moute announced yesterday (August 19th) that he is standing by his gold price prediction for the coming 12 months.

Moute, who has a number of gold mining companies in the top ten holdings of his $1 billion ABN AMRO US Opportunities Fund, has forecasted that gold will reach $1,600 per troy ounce in the next year.

Gold prices have cooled in recent weeks after a period of huge growth, but people looking to invest in gold will be boosted by the news that Moute is unmoved in his views.

He told "I am still using as a basic yardstick the fact that an ounce of gold should be 16 times the price of a barrel of oil.

"So a falling oil price is not that worrisome, as even if oil goes to $100 a barrel, that still does not change my 12-month view of gold reaching $1600 a troy ounce."

His stance appears to be supported by a recent poll by Kitco Bullion Dealers, the Canada-based refinery and metals dealer.

It found that 75 per cent of respondents believe the gold price will be above $1,000 on January 1st, 2009, while a third of those also expect it to rise to between $1,100 and $1,250.

Christopher Wyke, an emerging market debt and commodities product manager at $130.2 billion global asset management company Schroder Investment Management, has made an even bolder prediction, claiming that gold could hit $5,000.BullionVault-cube-18742503-ADNFCR

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