Gold prices 'good for a year' - Friday 2nd May 2008

One analyst in the gold industry has said that he believes gold prices could continue to rise in the light of the US's continuing struggle against recession, reports City AM.

Henk Potts of Barclays Wealth said that he believes gold prices will continue to remain positive in the long-term.

"Although inflation has generally needed to be above five per cent to have a major positive impact on gold, the possibility of upside surprises in both inflationary pressures and volatility is likely to lead investors to favor the asset over the next year," he said, according to City AM.

Mr Potts also pointed towards geopolitical conflicts in areas such as Iran as possible factors that could lead to rises in gold prices.

Barclays Wealth has increased its forecasts for the prices of gold in 2008 and 2009.

Gold prices have recently consolidated somewhat after hitting the record price of $1,000 an ounce in March 2008.

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Goldbug, 02 May '08

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