GOLD NEWS

Barclays lifts 2009 gold forecast to $940/oz

Barclays Capital has lifted its gold price forecast for 2009 to $940 an ounce.

Author: Reuters
Posted: Friday , 20 Mar 2009

Barclays Capital has lifted its gold price forecast for 2009 to $940 an ounce, it said, citing the prospect of a weaker dollar and fears over inflation.

"Plans for further quantitative easing by the United States has seen the dollar nosedive," the bank said in a note. "In that environment, gold will shine, and we have revised our price forecast higher."

The bank said it expects prices to rise to $905 an ounce in the second quarter from $872 in the first, to $950 in the third quarter and to $980 in the last three months of the year.

Spot gold was quoted at $953.15/954.65 an ounce at 1106 GMT, slightly below its level of $958.60 late in New York on Thursday but up nearly 3 percent week-on-week.

Gold has risen sharply since the Federal Reserve announced it would buy $300 billion in longer-dated Treasures on Wednesday, as fears over dollar weakness and rising inflation boosted prices. [GOL/]

For Factbox of gold price forecasts, click on [ID:nLK453764]

(Reporting by Jan Harvey; Editing by James Jukwey)

© Thomson Reuters 2009 All rights reserved