- Friday 17th April 2009
A prominent figure at SBI Futures has claimed today (April 17th) that he expects Gold Prices to recover strongly after their recent period of cooling, Reuters reports.
The yellow metal topped the psychological $1,000 per ounce barrier during February but failed to sustain those levels as investors use the opportunity to take short-term profits.
However, Koji Suzuki, a senior analyst at the firm, explained that he expects strong demand for Buying Gold in parts of Asia - in particular China - to bring about a recovery.
"Gold is sinking now because of the outflow of funds and technical profit-taking," he said.
"I think, though, that gold will resume rising after this period of correction is completed."
His comments come after Mary Anne and Pamela Aden, authors of well-respected monthly newsletter the Aden Forecast, claimed that gold could go as high as $5,800 per ounce on the upside.
"Remember, gold's peak in 1980 at $850 is now the equivalent of about $2,200 in today's dollars," Market Watch quoted them as writing.
"Gold has not even approached that level yet. Once the dollar declines again and inflation kicks in, it'll be another story."
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Goldbug, 17 Apr '09