March 12, 2009 / 10:10 AM / 8 years ago

Numis raises 2009 gold price view to $900/oz

2 Min Read

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)

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