gold price review

I know it doesnt help any of us but this article on the gold price was interesting. You would think any sort of grade at all would have made BW profitable given that the price has risen so much.

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Gold will continue to rally in the long run on demand in India, China, the Middle East and Russia, while short-term gains are ''difficult'' because of a drop in fabrication demand, Citigroup Inc. analyst John Hill said.

''The forces that have propelled gold for the past five years are intact, if not intensifying,'' Hill said today in a report. ''Central-bank policy prescriptions for the credit crisis are uniformly re-flationary.''

Gold for immediate delivery will average $US900 an ounce in 2008, compared with $US697.61 last year, Hill said, affirming a February 4 forecast. The precious metal will average $US950 next year and $US1000 in 2010. Spot gold is up 11% in 2008 after climbing for seven straight years. The price fell $US2.10, or 0.2%, to $923.20 an ounce at 3.56pm New York time.