Citi lifts precious metals price views on dollar

LONDON, Sept 9 (Reuters) - Citigroup (C.N) raised its gold, silver and platinum price forecasts for 2009 and 2010, saying a rocky outlook for the dollar and concern over inflation were likely to boost precious metals prices in the years to come.

The bank said it expects gold prices to average $940 an ounce this year, up from a previous forecast of $908, and $966 in 2010, up from $925.

It sees silver prices at $14.30 an ounce this year, rising to $16.10 in 2010, against previous forecasts of $13.30 and $14.30 respectively.

It also raised its 2009 platinum price view to $1,172 an ounce from $1,147, and its 2010 forecast to $1,350 from $1,300.

"We expect the U.S. dollar to continue on a weakening trend," it said on Wednesday in a research note. "This will be the main plank of price support."

"Any return of heightened risk in finance markets will boost gold prices," it added.

Spot gold XAU= rose to an 18-month high of $1,007.45 an ounce on Tuesday, and was at $994.20 at 1054 GMT on Wednesday. Platinum XPT= was at $1,276.50 an ounce, and silver XAG= was at $16.27 an ounce.

(Reporting by Jan Harvey; Editing by Keiron Henderson)