Tags: LBMA | London | Bullion | Market | Group | Gold

London Bullion Market Group: Gold May Rise to $1,450 in a Year, LBMA Survey Shows

Tuesday, 28 Sep 2010 09:36 AM

Gold may advance 12 percent to a record $1,450 an ounce in a year, according to the average response in a survey of attendees at the London Bullion Market Association’s annual conference.

The estimate is above yesterday’s prediction for a price of $1,406 an ounce by the time of the LBMA’s next gathering in September 2011. Immediate-delivery bullion reached an all-time high of $1,300.15 in London yesterday. Silver, platinum and palladium will also increase, today’s survey showed.

“We see weakness in the dollar in the next 12 months,” Frederic Panizzutti, a senior vice president of Geneva-based bullion refiner MKS Finance SA, said today in an interview at the conference. “This is positive for gold. There’s a total lack of safe alternatives.”

Bullion has outperformed global equities and most industrial metals this year. It’s on course for a 10th consecutive annual advance, the longest winning streak since at least 1920, as investors seek a shield from weaker currencies and the possibility that economies may return to recession.

“Investors are now more long term and not buying gold to make an immediate profit,” Panizzutti said. “They’re buying to protect assets.”

Record ETP Assets

Gold held through 10 providers of exchange-traded products reached a record 2,089.74 metric tons on Sept. 22, according to data compiled by Bloomberg. That’s almost as much as the combined official reserves of China and Switzerland, based on data compiled by the London-based World Gold Council.

A survey of about 140 attendees at last year’s conference in November forecast gold would climb to $1,181 by this month. The current gathering in Berlin has more attendees, LBMA Chief Executive Officer Stewart Murray said yesterday. The group plans to hold its next conference in Montreal.

The dollar will be weaker in 12 months’ time, 64 percent of respondents said in today’s survey. U.S. inflation will climb, according to 63 percent, though no “double-dip” recession will occur, the same portion said.

Gold has gained this year even as U.S. inflation slowed. Bullion is traditionally bought as a hedge against rising consumer prices. The metal traded at $1,289.28 an ounce at 12:45 p.m. in London today.

Silver will climb 13 percent to $24 an ounce in about 12 months, today’s survey showed. Platinum will rise 15 percent to $1,857 an ounce and palladium will gain 28 percent to $702 an ounce, it showed.

© Copyright 2017 Bloomberg News. All rights reserved.

1Like our page
2Share
StreetTalk
Gold may advance 12 percent to a record $1,450 an ounce in a year, according to the average response in a survey of attendees at the London Bullion Market Association s annual conference. The estimate is above yesterday s prediction for a price of $1,406 an ounce by the...
LBMA,London,Bullion,Market,Group,Gold,
390
2010-36-28
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved