Analysts Bullish on 2010 Gold Prices

October 6, 2009


If you ask leading analysts, gold prices will continue to reach new highs in the coming months. Last week, a Deutsche Bank analyst announced that gold prices would reach $1,100, saying, "We are positioning for fresh highs in the gold price."
A few weeks earlier, Credit Suisse analysts told clients to expect gold to continue to rise in September and October.
Similarly, RBS analyst, Stephen Briggs said he expects the price of gold to reach $1,100 and that "Gold's long-term history as a harbinger of inflation, or gauge of inflation expectations, is clear..."
They're not only bullish on gold. Industrial metals are expected to rise as well. Societe Generale (SocGen) gave investors a bullish outlook on industrial metals, citing, "very positive fundamentals."
One reason for all the increasingly bullish sentiment regarding precious metals prices is speculation regarding the end of US Dollar hegemony.
Yesterday at the G-7 meeting in Istanbul, US Dollar weakness was a hot topic. Almost immediately after an official statement suggested that no action should be taken to soften the Dollar's decline, gold prices jumped from about $1,003 to $1,020 within a couple of hours.
Furthermore, there are increasing reports that the Dollar will no longer be used as the sole currency for oil trading. Although denied by key officials, the mere speculation was enough to push gold prices to record (nominal) highs of over $1,033 this morning.



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