GFMS Gold Survey Calls For New High

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GFMS took the wraps off its much anticipated Gold Survey 2007 report, unveiling a bullish call for gold to move above its 2006 high of $725/ounce by the end of this year.

GFMS took the wraps off its much anticipated Gold Survey 2007 report, unveiling a bullish call for gold to move above its 2006 high of $725/ounce by the end of this year.

Quite whether wed then get close to the all time high of $850 is more doubtful, but Id certainly expect the upward price trend to continue on into 2008, said Philip Klapwijk, chairman of the independent precious metals research consultancy.

GFMSs bullish assessment is based mainly on rising investment demand, although demand actually slipped from 2005 to 2006 as prices stopped their meteoric ascent. Still, the GFMS is bullish. The strength of the gold price in 2007 to date, the continued moving up of the floor at which physical buying kicks in to support the metal and a further, albeit smaller, decline in gold supply is also expected to boost investor confidence in the yellow metal, it said.

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