Industry experts see gold price stable over next year

27th September 2010, Comments 0 comments

Industry professionals gathered for a precious metals conference in Germany forecast on Monday that the price of gold would be roughly stable over the next year after recent strong gains.

Bankers, traders, mining executives and others forecast on average that the price of the yellow metal would be 1,406 dollars per ounce in September 2011, compared to around 1,300 dollars per ounce now.

Since September 2009, gold prices have soared about 30 percent, as investors worried about the global economy sought a save haven, hitting on Friday a new record 1,300.07 dollars per ounce.

At last year's conference on precious metals organised by the London Bullion Market Association (LBMA), participants were overly cautious, forecasting that gold would reach 1,181 dollars per ounce by this year's gathering.

Gold also benefits from a weakening US currency, which makes the dollar-priced metal cheaper for buyers using stronger currencies and so tends to stimulate demand and prices.

Silver, meanwhile, jumped to 21.44 dollars an ounce on Friday -- its highest level since September 1980.

© 2010 AFP

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