Gold Outlook Rosy as Market Jitters Persist-LBMA
Source: Reuters, Jan Harvey (11/2/09)
". . .it doesn't take massive amounts of money coming into this market to really keep things looking positive."
Speaking on the sidelines of the LBMA's annual conference, Crisp said the current environment was "still very positive for the dollar gold price," though he declined to give a forecast.
"There are still very few people willing to come in and sell gold in any sizeable way," he said. "There are some sellers out there, but whatever they sell seems to be absorbed very readily by the market. To me, it is hard to see a real sustained slide in the gold price."
Spot gold rallied nearly 13% from the beginning of September to a record high of $1,070.40 an ounce on October 14. At 3:25 p.m. on Monday it was bid at $1,061.20 an ounce.
Gold prices, which climbed sharply in early 2009 as fears rose over the stability of the wider financial markets, are still benefiting from concern over the economic outlook, Crisp said.
"Personally speaking, I still feel the global business outlook is still a little cloudy," he said. "That means that many people are wanting that insurance policy."
He said the size of the gold market, compared to the equity or currency markets, meant even small changes in investor attitudes towards precious metals was significant for prices.
"It doesn't have to be a case of everybody getting into gold," he said. "It is a lot more mainstream than it used to be, but it doesn't take massive amounts of money coming into this market to really keep things looking positive," adding "this market is not at this point in time driven by fundamental factors."