Gold may exceed $1,000 this year: Morgan Stanley
Gold may surpass 1,000 dollar an ounce this year amid concerns over a possible US recession and global inflation, said Morgan Stanley.
By Agencies |
SINGAPORE: Gold may surpass 1,000 dollar an ounce this year amid concerns over a possible US recession and global inflation, Morgan Stanley, the second biggest US securities firm, said.
The precious metal may average 950 dollar an ounce this year and 1,000 dollar in 2009, New York-based research analysts Hussein Allidina and Jeremy Friesen said.
"Gold is an old friend that we continue to favour," the analysts said. "Unlike the brief spike to 850 dollar an ounce in 1980, we believe that gold prices are sustainable at current levels."
Bullion for immediate delivery has gained 6.4 per cent this year and stood at 887.07 dollar in Singapore. That's three per cent below its record 914.30 dollar reached on January 14. Gold jumped the most in 11 months after an emergency US interest rate cut reduced the value of the dollar.
Silver may average 17 dollar an ounce this year, rising to 19 dollar in 2009. The metal has climbed 7.8 per cent this year, and traded at 15.95 dollar in Singapore today.
"Silver will be our new friend, though is likely to lag gold as a US-led recession limits global industrial demand," Morgan Stanley said.
The precious metal may average 950 dollar an ounce this year and 1,000 dollar in 2009, New York-based research analysts Hussein Allidina and Jeremy Friesen said.
"Gold is an old friend that we continue to favour," the analysts said. "Unlike the brief spike to 850 dollar an ounce in 1980, we believe that gold prices are sustainable at current levels."
Bullion for immediate delivery has gained 6.4 per cent this year and stood at 887.07 dollar in Singapore. That's three per cent below its record 914.30 dollar reached on January 14. Gold jumped the most in 11 months after an emergency US interest rate cut reduced the value of the dollar.
Silver may average 17 dollar an ounce this year, rising to 19 dollar in 2009. The metal has climbed 7.8 per cent this year, and traded at 15.95 dollar in Singapore today.
"Silver will be our new friend, though is likely to lag gold as a US-led recession limits global industrial demand," Morgan Stanley said.
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