CITI UPS GOLD FORECAST TO TEST $1,000/oz IN '08

By John Jameson on February 5, 2008 9:23 AM |



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NEW YORK, Feb 5 (Reuters) - The price of gold will average $900 an ounce with a test of the historic $1,000 level possible this year based on strong investment buying amid a weak dollar, inflation concerns and safe-haven demand, a Citigroup metals analyst said.

John Hill, director, metals research, at Citi in San Francisco, told clients in a note dated Monday that the ongoing credit crisis and the threat of a U.S. recession and a global slowdown could further boost gold.

"Should inflation accelerate while (interest) rates are locked under economic weakness, gold could spike near past inflation-adjusted highs," Hill said.

"We view this as an extremely hospitable macro environment and believe the ongoing investment-driven demand phase will continue for gold, particularly as the broader investor base is not yet fully involved," he added. . .

 

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This page contains a single entry by John Jameson published on February 5, 2008 9:23 AM.

A NEW RECORD HIGH FOR GOLD ON RECESSION WORRIES, WEAK DOLLAR & S. AFRICA POWER SHORTAGES was the previous entry in this blog.

THE COMING GOLD SURGE is the next entry in this blog.

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