Today's Coming Crisis Movie

Thursday, April 21, 2011

Gold price could rise to $1,700 an ounce

Gold's decade-long rally could last for another four years, with the price climbing to $1,700 an ounce, analysts predicted, as the precious metal reached another record high in morning trading.

Inflation will help the price of gold go up, but the strong gains seen in recent months are likely to be tempered as the world economy improves.

A poll of 12 analysts by Reuters found the average price forecast for gold in 2015 was $1,700, a 12.7pc rise on the all-time high of $1,508 reached today.

The forecasts ranged from $1,000 an ounce to $2,750, but even if the price reached the top end of that, the pace of gains would be slower than in recent years.

The price of gold increased by 24pc in 2009 and 30pc in 2010.

Today, the spot price rose as high as $1508.88 an ounce, before falling back slightly to $1507.45, a 0.3pc increase on yesterday's closing price. (read more)