Gold to Exceed $2,000 as Investors Seek Haven, Barclays Says

According so Keven Norrish, the managing director of commodities research at Barclays Capital, gold will exceed $2,000 an ounce as the financial and economic crisis in Europe boosts the demand for a safe haven and should be bought up during these price dips.

By Tony C. Dreibus and Nicholas Larkin
Sep 22, 2011 8:15 AM MT
Bloomberg

Gold will exceed $2,000 an ounce as the economic crisis in Europe boosts investor demand for a haven, said Kevin Norrish, managing director of commodities research at Barclays Capital in London.

Gold for immediate delivery climbed to a record $1,921.15 on Sept. 6 and is heading for an 11th annual consecutive gain, the longest winning streak since at least 1920 in London. Prices more than doubled since the end of 2007 as stock markets slumped, economies contracted and central banks and governments pumped more than $2 trillion into the global financial system.

“The last few weeks there has been a flow back into physical gold,” Norrish said. “Gold will continue in its current environment. It’s a volatile haven. We think it will trade above $2,000 an ounce before too long and will move higher.”

Bullion fell $53.38, or 3 percent, to $1,728.97 an ounce at 3:42 p.m. in London trading.

Gold prices may be at risk from an increase in holdings of exchange-traded products, Norrish said at a separate conference in London today.

“Investors have a large amount of gold,” Norrish said. “It may well be that a lot of it gets dumped on the market” when the opportunity costs of holding gold change, he said, referring to interest rates.

To contact the reporters on this story: Nicholas Larkin in London at nlarkin1@bloomberg.net; Tony C. Dreibus in London at tdreibus@bloomberg.net

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net

To see original article CLICK HERE

Follow Us

Share Page

Login

Get access to the latest trading information, tools to help your investing, and much more!

Login   Sign Up

Search

Weekly Charts

Current Spot Prices

Gold$1228.70
Silver$17.18
Platinum$1254.00

Special Offers

 
 
© 2012 Swiss America Trading Corp. All Rights Reserved.   |   Privacy Policy   |   Site Map   |   Contact Us   |   Mobile Version
SWISS AMERICA and Logo are trademarks of Swiss America Trading Corp.
Where did you hear about us?
Roger HedgecockRay Lucia
Pat BooneMichael Savage
Bill CunninghamOther
iHeart Radio/Rush Limbaugh
×