In GFMS's view, the growth expected, especially in value terms, of investment demand will probably be sufficient to drive prices above the USD 1,300 mark during the second half," the London-based consultancy firm said in a statement.Fabrication (mainly jewelry) demand is expected to rise too, although not very fast because of higher prices; 2010's demand is not expected to exceed 2008's. The main risk to gold is a substantial tightening in monetary policy.
GFMS expects investment demand to be volatile in the second half of 2010, but remain on a positive trend overall due to ongoing concerns on the long-run value of major currencies, it said.
Thursday, July 8, 2010
GFMS Call For $1,300 Gold Within Six Months
Largely because of investment demand, GFMS called for gold to reach $1,300 in the second half of this year.