Tuesday, January 19, 2010

Gold forecast to hit $1,350 per ounce

A leading investment institution is predicting that gold dealers will continue to see strength in their sector in the coming year, despite concern about some pending economic factors.

The UK's Telegraph newspaper quoted a report from Goldman Sachs economists as predicting that the price of gold will reach $1,350 per ounce a year from now, based on the expectation that the Federal Reserve will not raise short-term interest rate targets either this year or next.

"We continue to expect that the resulting low real interest rate environment will continue to support gold prices," the newspaper quoted the report as saying, going on to note that last week, gold prices stood at about $1,139 per ounce and that investors will also be able to benefit from commodities like platinum and palladium in the coming months.

Some economists have warned that the size of the U.S. federal deficit and national debt could undermine the performance of the dollar in the longer term, which could also be a positive sign for gold investments.

Another trend to consider is the economic activity being seen in a number of developing economies, such as China and India, where materials like gold and silver are increasingly in demand for industrial applications and also because of a rapidly growing middle class.

News brought to you by Superior Gold Group