Monday, 17th January 2005 (3043 views)

Deutsche Bank has predicted that gold will reach its highest price this year since 1981 as the dollar continues to weaken, thereby making gold a more attractive investment.

In an updated report, Deutsche revised previous forecasts upwards by seven per cent to predict an average gold price of $458.80 an ounce, according to Business Report.

Furthermore, Europe's third-largest lender said gold would climb to $490.30 in 2006, which would be the highest since 1980.

London analysts John MacKinnon and Tama Willis stated: "Further weakness in the US dollar as a result of unsustainable external imbalances and only measured return to a positive real interest rate environment in the US is expected to be particularly beneficial to dollar gold prices."

A survey of 37 analysts by Bloomberg last month was more conservative, predicting an average price of $435 an ounce for the coming year.

Gold's average price increased by 13 per cent over the course of 2004 finishing at nearly $410 an ounce.

 

« Back to the stories

 

The news feeds on this site are independently provided by Adfero Limited © and do not represent the views or opinions of the World Gold Council.