Gold Survey 2007 predicts gold to touch $1,000 an ounce

If gold prices continue to behave volatile like they did last week touching $914.30 dollars, the Gold Survey 2007 released by precious metals consultancy GFMS predicts the prices to touch $1,000 an ounce during the year 2008. Gold seems to have been affected by factors like the weak dollar, oil prices, the US economic crisis and geopolitical tensions. The GFMS notes that rising prices is bound to affect two groups, directly. While the investors would see it as a fantastic opportunity, retailers are sighing at the decreased sales of gold jewellery.

According to GFMS executive chairman Philip Klapwijk “Investor appetite for gold at the moment seems undimmed and this should push gold higher over the year.” The GFMS estimates a drop of around 20% over the first six months of 2008 in gold jewellery sales, and continuous rising prices sales would affect sales further on. The report also stated that Global gold mine output in the first half of 2008 is expected to increase by over 2%.