LBMA conference delegates see gold hitting $1,181.30 one year from now

A poll conducted by the organizers of the London Bullion Market Association conference shows that delegates are mostly bullish on precious metals prices.

EDINBURGH (Reuters) - 

 Delegates at the London Bullion Market Association annual conference expect to see gold prices XAU= at $1,181.30 an ounce in 12 months' time, a poll conducted by the conference organisers showed.

Around 370 traders, analysts, miners, central bankers and others are attending the conference in Scotland, which concludes later on Tuesday.

Spot gold's current record high is $1,070.40 an ounce, reached in October and the metal traded around $1,062 an ounce on Tuesday afternoon.

When asked where they expected to see prices at the time of the LBMA's next conference in 12 months time, the delegates were mainly bullish on precious metals.

Silver prices XAG= are expected to be at $18.10 an ounce in 12 months' time, they said, while platinum XPT= is expected to be at $1,629.10 and palladium XPD= at $475.80 an ounce.

Their positive outlook for gold also reflected broad expectations for a rise in inflation and persistent weakness in the dollar over the next 12 months.

Around two-thirds of delegates expect the U.S. dollar to be weaker in 12 months' time, with only 37% expecting it to be stronger.

G7 inflation was expected to be higher, according to 67 percent of participants, with 33% expecting it to be lower.

John Reade, public affairs committee member for the LBMA, said in his closing address that both factors would be expected to support gold.

"Most people concerned about the weaker dollar have probably worked out that gold is the place to be," he told delegates.

"If inflation fears do increase dramatically, gold will trade much higher," he added.

Just over a third of delegates expected economic growth to be stronger in 12 months' time, with a further 54% expecting it to be about the same.

A return to economic growth would be expected to support the more industrial precious metals -- silver, platinum, and palladium -- which saw a dip in demand as the economy faltered. Platinum and palladium are used in the making of auto catalysts, while silver is used in electronics.

(Reporting by Jan Harvey; Editing by Keiron Henderson)

© Thomson Reuters 2009 All rights reserved

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