Gold Prices will hit $1,500 in 'two to three years'

A senior figure at Superfund Financial Singapore claimed yesterday (May 5th) that Gold Prices could rise to $1,500 per ounce in the next few years, Bloomberg reports.

The yellow metal hit an all-time record high of $1,033 per ounce last March as investors sought a safe haven from the financial crisis, while it also passed four figures in February.

Now Aaron Smith, managing director of the investment firm, has explained that the dollar - which moves in the opposite direction to the Gold Price - looks set for a long struggle.

"Gold can go to $1,500 an ounce in the next two to three years," he told the news provider in a television interview.

"Much of that is based on the erosion of the value of the dollar because of the increasing money supply."

That view was echoed by Bayram Dincer, a Zurich-based analyst at Dresdner Bank, the third-largest lender in Germany.

He explained that any rises in gold prices in the short term - with the results of the US bank 'stress tests' set to be released tomorrow - will be extended in the long run.

"Gold will retest $910 an ounce resistance and surpass it," he told Reuters. "Gold fundamentals are still well intact and are expected to become more price-supportive."

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