GFMS's Walker Looking for $1,000 Gold Soon

Source:

"I would be surprised given the scale of the economic crisis if gold doesn't scale above $1,000," said Paul Walker, CEO of GFMS, ahead of the London Bullion Market Association annual conference in Kyoto.

Gold should surge above $1,000 an ounce as the financial crisis fuels safe-haven fund buying, but may then come under pressure as fickle investors slow purchases, the chief of metals consultants GFMS said on Sunday.

"In terms of core trading range for us, I have to say that gold going up towards the $1,000-level is not an impossibility at all," Paul Walker, CEO of GFMS, told Reuters in an interview.

"I would be surprised given the scale of the economic crisis if gold doesn't scale above $1,000," he said ahead of the London Bullion Market Association annual conference in the ancient Japanese capital of Kyoto.

GFMS predicted on September 17 that prices would soar well above $900 an ounce in the fourth quarter as the U.S. dollar weakened and investors scrutinised the U.S. government's creditworthiness.

Later that same day prices staged their biggest ever one-day rally in real terms, soaring from around $775 to end just shy of $863 an ounce. They jumped again on September 18, briefly topping $900 before falling amid unprecedented volatility.

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