Investors to Push Gold Above $1,000 in 2008 - GFMS
Source: Reuters (2/4/08)
The price of gold is likely to peak at just over $1,000 per ounce in 2008 and benefit from any weakening of the U.S. economy as investors seek new havens for their funds, London-based consultancy GFMS said today.
The influence of investors would also be crucial in turning the tide, which is likely if the United States weathers its economic problems in the middle term. If that happens, the gold price could start its decline in about three years from now, GFMS Chief Executive Paul Walker said...
"The market will be choppy, and sensitive to investment flows so we have an interesting ride ahead," Walker said. "The question is what happens when investor demand turns, when the U.S. economic problems are resolved ?"
Walker estimated that investor demand was 12 percent of total demand for gold in 2007, and saw this figure jumping as market players chart new courses to navigate a potential storm in the U.S. economy.