Gold Price ForecastReported by thebulliondesk.com
Gold High : $760 Low : $520.75 Average 2006 : $618
Quarterly Averages =
Q1 2006 $555
Q2 2006 $575
Q3 2006 $640
Q4 2006 $685
Average 2007 $730
2006 - Arguably the toughest gold price forecast to make in a generation. Disconcertingly the market
appears to have migrated from something that one could readily measure and weigh according to a
reliable set of supply/demand statistics. External factors are likely to remain positive for gold – US dollar
weakness, inflation, geopolitical tension (Iran), fewer US rate rises, US trade deficits, avian flu,
the (non) performance of other competing asset classes and a favourable tide across the
commodity complex – particularly oil. Internal factors look equally compelling – stagnating mine
production, demand rising through the opening of new bullion exchanges and increased the availability
of gold through structured products and other investment vehicles. In short – more of the same. After
annual price rises of 23%, 25%, 5% and 20% over the last 4 years we believe gold is in for another
bumper year – just like the others – that is slow in the first half but accelerating in the second half of
2006. We do not expect the word “gold bubble” to be in regular use – that comes in 2007.