CITIGROUP FORECAST - GOLD CAPABLE OF DOUBLING OR TRIPLING

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2008/7/3 2:46:07

Gold is likely to regain $1,000 per ounce by the end of 2008 and to work higher through 2009-2010, Citigroup has forecast.

In its recent Gold Commodity Update, Citigroup metals analysts, John H. Hill and Graham Wark also predicted that “gold is capable of doubling or tripling from current levels.”

The analysts said “secular and seasonal factors favor gold” during the second half of this year.

“We remain positive on gold, based on macro and supply/demand factors. The forces that have propelled gold for 5 years are firmly in place,” they stated.

During the second quarter of this year, gold has averaged $896 per ounce, up 34 percent from the same quarter of 2007 and down 3 percent from the first quarter of this year.

“Following a series of downside fundamental tests gold appears to have found a floor, and quietly climbed back to $917per ounce. We believe the drivers of the gold bull market remain intact, heading into a favorable period,” analysts added.

As at yesterday, the price of gold stood at $940.900 per ounce. Gold prices increased by more than 30 percent in 2007. Gold has generated positive returns of 43 percent over the last year and 11 percent year to date in 2008.

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This page contains a single entry by John Jameson published on July 3, 2008 3:43 PM.

BREAKING NEWS: DOW AVERAGE DROPS INTO BEAR MARKET -- BLOOMBERG was the previous entry in this blog.

Capital Gold Group Report: Gold a Quality Asset in Ongoing Financial Crisis: SEC Probe of Raters Reveals Conflicts in Grading Debt is the next entry in this blog.

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