The US dollar gold price is likely to continue its two-year bull trend in 2004 driven by a weak US dollar, the renewal of the Washington central bank gold agreement and the threat of renewed terrorist attacks, Switzerland-based MKS Finance analyst Frederic Panizzutti says.
Panizzutti expects gold to trade in a range between a low of US$380 an ounce and a high of $480/oz with the average price for 2004 being $440/oz.
“One of the main events in the first quarter of the year will be the long awaited announcement of the renewal of the Washington Agreement and its terms and conditions,” he added.
“The established bull trend will generate broader interest and attract fresh investments in the yellow metal. The gold market will remain very volatile in the course of the year,” Panizzutti predicted.
Platinum, used in auto catalysts and jewellery, is forecast to reach a high of $1 000/oz in 2004 and a low of $780/oz, or a 2004 average of $900/oz.
Sister platinum group metal palladium is expected to remain depressed in 2004 and is set to trade in a range between $180/oz and $240/oz with the year average of $215/oz, Panizzutti said. – I-Net Bridge