murenbeeld - $us540 re: gold to fall further?
Gold on the up: Murenbeeld
Tuesday, April 12, 2005 RISING US interest rates and a further weakening of the greenback could see gold close the current year at a bullish $US540 per ounce according to analyst Martin Murenbeeld, with a further rise to $US557 in 2006 also possible.
Murenbeeld said there was a 20-25% chance that gold would close at this price, and a 60% chance it would make $US458/oz.
Murenbeeld told the Gold Forum in Perth, Western Australia, that demand for gold could be affected by a further decline in the US dollar and increased world debt levels.
Central banks of Asia could also diversify into gold. However, this demand could be met by the possible off market sale of the International Monetary Fund's gold reserves.
The recent introduction of exchange-traded funds could also drive demand.
On the supply side, the price could be buoyed by the Central Back Agreement, which restricts the sale of gold. Mine output will remain stable at best, according to Murenbeeld.
