Summary
A Week before it is said in a reasearch that Gold will be around $650/ounce by 2010 by Barclay Capital and Now Morgan Stainly has stated that Gold can go to his previous high of $1000/ounce in 2009-2012.
Analysis
gold may average higher for each of the next three years and climb to a record driven by increased demand and a declining dollar as governments ramp up spending to battle the global recession, according to Morgan Stanley. The metal may average $900 an ounce this year, up 20 percent from an earlier target of $750, the bank said today in a report. It may average $1,000 in 2010, $1,050 in 2011 and $1,075 in 2012, up as much as 34 percent from previous estimates, the report said. The commodity peaked at $1,032.70 on March 17. Morgan Stanley joins Standard Chartered Plc in raising its target for gold prices amid concern that the dollar may drop as the supply of the currency is increased. President Barack Obama, sworn in yesterday, plans an $850 billion stimulus on top of a $700 billion bank-bailout package enacted under his predecessor. The International Monetary Fund has forecast that advanced economies including the U.S. will contract simultaneously this year for the first time since World War II, spurring stimulus plans backed by more state debt. Gold, regarded by some investors as a safe-haven asset, can rise when the dollar falls.
While a week before Barclay Capital stated that Gold may fall to $750/ounce by 2010 and it will happen due to the Global Financial Crisis, and weak dollar prices. And its seems to be possible when it can ahppen with Crude why not Gold.
We all know that Gold is paid against Crude Oil and we have seen Crude which cross almost $150/barrel and now is round $45/barrel, when this can happen with crude then why not Gold.
We should also considered that Gold Investment will surge in the First Half of 2009 by 11% or so.
This uncertainity in the market will affect the sector a lot and this also shows lots of irregularities due to MCX and MCDX trading, if this uncertainity is to be improve than Government should think about these trading and should stop them for few years to improve market situations.
