Tuesday, February 10, 2009

Goldman Sachs lifts gold price forecast to $1,000/oz

SINGAPORE, Feb 5 (Reuters) - Investment bank Goldman Sachs
(GS.N) raised its forecast for the price of gold to
reach $1,000 an ounce in the next three months from its
previous forecast of $700 due to rising investor demand for
safe haven assets.
"The gold price rally has been driven by surging demand for
gold in all forms: physical gold, exchange-traded funds (ETFs),
and futures contracts as investors seek 'a safe store of value'
amid the financial distress and inflation risks," it said in a
report.
It also noted that a strong relationship betwween the price
of gold in U.S. dollars and the exchange rate of the dollar
agsinst other currencies has begun to break down. Gold was
trading at $903.15 an ounce by 0038 GMT, down $1.70 from New
York's notional close.
(Reporting by Lewa Pardomuan; Editing by Jan Dahinten)

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