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e-gold price forecasted to be $700 an ounce in 2007
Citigroup lifts gold price forecasts
June 7 2006
LONDON: US financial giant Citigroup said yesterday it was raising its 2007 price forecast for spot gold to US$700 (US$1 = RM3.64) an ounce from the previous US$560 it made in Januar y.
It also lifted its forecast for 2008 to US$750 an ounce from US$580, expecting prices to work higher from the fourth quarter of this year.
Citigroup said in a special report that the recent fall from 26-year highs (US$730) was a healthy correction after a 50 per cent rise in just six months since November 2005.
“Profit taking after an exceptionally strong run, deferred signs of a traditionally weak quarter, and weak fabrication demand in times of declining investment off-take appear to have led to this latest correction.â€Â
“Nonetheless, we remain positive on gold and expect its upward trend to continue over the next two years.â€Â
It said that investment demand has been the key driver behind gold’s recent rally, and the trend of “long-only†funds to have some exposure to commodities and gold will bolster the upside.
Also, the nuclear standoff in Iran, conflict in Iraq, the leftward move and talk of nationalisation in South America and political fragmentation in the US will maintain an undercurrent of safe-haven demand for gold.
“We expect gold to consolidate around current levels in the next few months before rising further to US$675 in the fourth quarter and into 2007 and 2008,†Citigroup said.  Reuter
Citigroup lifts gold price forecasts
June 7 2006
LONDON: US financial giant Citigroup said yesterday it was raising its 2007 price forecast for spot gold to US$700 (US$1 = RM3.64) an ounce from the previous US$560 it made in Januar y.
It also lifted its forecast for 2008 to US$750 an ounce from US$580, expecting prices to work higher from the fourth quarter of this year.
Citigroup said in a special report that the recent fall from 26-year highs (US$730) was a healthy correction after a 50 per cent rise in just six months since November 2005.
“Profit taking after an exceptionally strong run, deferred signs of a traditionally weak quarter, and weak fabrication demand in times of declining investment off-take appear to have led to this latest correction.â€Â
“Nonetheless, we remain positive on gold and expect its upward trend to continue over the next two years.â€Â
It said that investment demand has been the key driver behind gold’s recent rally, and the trend of “long-only†funds to have some exposure to commodities and gold will bolster the upside.
Also, the nuclear standoff in Iran, conflict in Iraq, the leftward move and talk of nationalisation in South America and political fragmentation in the US will maintain an undercurrent of safe-haven demand for gold.
“We expect gold to consolidate around current levels in the next few months before rising further to US$675 in the fourth quarter and into 2007 and 2008,†Citigroup said.  Reuter
tapi ada kaitan dgn masa depan e-gold gak.
