Gold prices 'not bearish' - Saturday 3rd May 2008

The support for investment in gold continues, with another analyst speaking out in favor of placing assets into the precious metal.

According to Forbes on May 2nd, Graham Birch, head of resources at BlackRock, said that he believes gold prices will remain high this year, as the economic worries in the US are not over.

"There is no reason why the broad up-trend should be over. I don't think that moving from $1,000 to $850 is the start of a big bear market for gold," he said, according to Forbes.

Mr Birch added that it will only take another crisis such as the one witnessed in the banking sector in March to start pushing gold prices back up again.

Despite the current consolidation in the market, gold prices are up 26 per cent on last year.

GFMS said in a report published earlier this year that the speed of the gains witnessed in March were unsustainable, but that it did not mean the good run for gold bullion was over.

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Goldbug, 03 May '08

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