Numis raises 2009 gold price view to $900/oz
LONDON, March 12
LONDON, March 12 (Reuters) - Numis Securities said it is raising its 2009 gold price forecast to $900 an ounce from $700 previously, citing risk aversion, the prospect of a weaker dollar and fears global stimulus measures could cause inflation.
Strong demand for physical stocks of the precious metal for investment products such as coins and to back commodity exchange-traded funds is also likely to boost prices, it said.
The broker upped its price forecasts for 2010 and 2011 to $850 an ounce from $750 previously.
"Gold as an investment vehicle and quasi-currency remains relatively buoyant, supported by continued risk aversion from investors," it said in a news release issued on Thursday.
"The massive global monetary and fiscal stimuli, including U.S. and UK quantitative easing, may result in a shift from a potentially deflationary environment to an inflationary one," it added.
Inflation fears fuelled by rising commodity prices had been a key factor pushing gold to a record $1,030.80 an ounce in March last year, it said.
Spot gold XAU= was at $911.05/912.55 an ounce at 0932 GMT. It rallied to an 11-month high of $1,005.40 on Feb. 20 as tumbling stock markets sparked buying of the metal as a haven from risk. (Reporting by Jan Harvey; Editing by Anthony Barker)
- Scots vote on independence, United Kingdom's fate on knife-edge |
- Islamic State shows captive British journalist in new video
- Australian PM says police raids follow IS linked beheading plot |
- New evacuations ordered as California wildfire doubles in size |
- Chinese hacked U.S. military contractors: Senate panel