Tuesday, 22nd August 2006 (4728 views)

Paul Walker, the managing director of international research firm GFMS, has said that gold could reach record price levels in the long-term.

Mr Walker's comments, made at the third India International Gold Convention earlier this week, gave gold traders and investors' confidence that the metal can bounce back from its relatively low recent levels.

Currently, the price of the precious metal has been hovering between $600 and $620 an ounce and although Mr Walker was quick to note that gold was likely to fall in the short-term, a major recovery and boom was set to begin in 2007.

Pointing to a jewellery demand slump which had not dented real-money sales of gold products, Mr Walker predicted that when demand begins to show promise again, which it surely would, that the price would again rise, perhaps even topping this year's high prices of over $700.

The weakness of the dollar and predictions of inflation are set to boost gold as a prospective investment safe haven and long-term investors returning their support to gold is also likely to encourage future market prosperity, analysts confirmed.

 

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