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Thursday, 16th April 2009 (1629 views)

A number of leading international banks have raised their gold forecasts for 2009, as precious metals prices remain high.

Societe Generale has revised its gold prediction up to $865 (£581) per ounce for this year and Barclays has increased its gold price forecast to $940 an ounce because of inflationary fears and the weakness of the dollar, Reuters reported.

"Plans for further quantitative easing by the United States has seen the dollar nosedive," Barclays Capital said in a research note. "In that environment, gold will shine and we have revised our price forecast higher."

Additionally, BNP Paribas believes that gold will average $900 an ounce this year and will remain a "safe haven" investment.

JP Morgan recently announced that it expects the price of gold to rise to $960 in 2009, significantly higher than an earlier prediction of $831 per ounce.

Meanwhile, Steven Kelman recently wrote in the California Morning Star that decisions made by the G20 countries and the International Monetary Fund over the past few months could benefit gold investors in the future.

 

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