GOLDMAN LIFTS GOLD PRICE FORECASTS

By John Jameson on January 16, 2008 8:32 AM |
January 16, 2008: 03:55 PM EST
 
 

 
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NEW YORK, Jan. 16, 2008 (Thomson Financial delivered by Newstex) -- Goldman Sachs (NYSE:GS) raised Wednesday its gold price forecasts to reflect expectations of a U.S. recession in 2008, which should lead to a lower U.S. dollar.

Analyst Oscar Cabrera raised his 2008 average gold price forecast to $910 an ounce from $800, his 2009 estimate to $870 an ounce from $852 and his 2010 projection to $940 an ounce from $907.

Cabrera expects investment demand, emerging market central bank purchases and declining mine supply to continue to support gold prices.

Goldman sees the dollar falling vs. the euro to $1.5 in the next six months, vs. the previous exchange rate forecast of $1.35, as the firm's economists now expect a contraction in gross domestic product during the second and third quarters.

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This page contains a single entry by John Jameson published on January 16, 2008 8:32 AM.

GOLD RACES TO RECORD HIGH NEAR $915 ON WEAK DOLLAR -- JANUARY 14, 2008 was the previous entry in this blog.

GOLD PRICES SET FOR $1,000 IN 2008 is the next entry in this blog.

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