GFMS: Gold Price To Rise On Growth Of Investor Interest

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According to Mineweb.com, FMS Ltd, in its second (January 2007) update to the Gold Survey 2006, believes that the gold price should track higher over the coming months and that investment activity would be the prime driver of any such rally.

FMS Ltd, in its second (January 2007) update to the Gold Survey 2006, believes that the gold price should track higher over the coming months and that investment activity would be the prime driver of any such rally. Chief Executive Paul Walker, presenting the Survey at its launch in Toronto on January 18th, commented that “we’re fully expecting investor buying to come back in force, mainly in response to actual and potential dollar weakness. A slowdown in the US economy and disappointing returns in conventional assets, such as equities, should lift gold”.

With respect to absolute price levels, he noted that “we should be seeing prices getting into the $670s in the first half, although it is less certain we will see the recent high of $725 surpassed. That could still occur, maybe further into the year or possibly in 2008, especially if the situation in the Middle East deteriorates significantly, driving prices higher”.

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