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Gold Price May Rise Above $1100, GFMS metals consultancy

The gold price may rise above 1,100 dollars an ounce in the coming months, GFMS said

The precious metals consultancy GFMS published its annual Gold Survey this week, where it states that gold «could easily re-attain the 1,000-dollar mark and may well push up towards and perhaps even through the 1,100-dollar barrier.»

The report singles out the fiscal and monetary policies currently being enacted, especially by the US administration, as the root cause through their ability to generate inflationary pressures. Gold benefits from the prospect of higher inflation because it is widely regarded as a safe-haven investment that can preserve value amid troubled economic times.

GFMS added in the report: «The consultancy… cautioned that it may well not be a straight-line rally as a summer lull or the need for inflationary pressures to build could mean sub-900-dollar prices in the short term.»
Gold prices are currently trading below the record high points forged last year.

Author: Ksenia Kochneva

Source : AFP