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NEWSLETTERS > Gold prices could hit $1,500
Gold prices could hit $1,500

May 18, 2010

Report: Gold prices could hit $1,500
May 13, 2010

New York--Gold prices, which touched a new high of $1,249 an ounce Thursday, are expected to head northwards on a "medium-term basis," reaching $1,338 to $1,550 levels, according to reports from Kitco and ScotiaMocatta, the global bullion banking division of the Bank of Nova Scotia.

Analysts say that even at current levels, investors in gold have already made a profit of approximately 7.92 percent, and that investor desire for physical gold will remain strong and will support higher prices.

In India, higher gold prices might prompt a pull back in consumer jewelry demand, analysts says, but with the Hindu holy day Akshaya Tritiya right around the corner, market reports also indicate that consumers have already begun purchasing large amounts of gold. Though the holy day is not until May 16, customers have been making their bookings in order to take advantage of the current price advantage. At press time, gold was trading at just under $1,240 per ounce.

According to tradition, starting a new activity or buying valuables, including gold jewelry, on the day of Akshaya Tritiya is thought to bring individuals luck and success.

Gold prices since January have primarily remained in the $1,000 and $1,100 range, but broke the $1,200 mark in early May and continue to climb.