From the department of gold medal forecasting:
Gold rose 30% in 2007. If it repeats that performance this year, then it should reach $1100. Oil rose from $60 to $100 in 2007, an increase of two-thirds. If it increases at the same rate we'll see $166 per barrel by the end of 2008.
These aren't predictions, but I would say that both gold and oil still have a lot further to go before they reach a record high and begin dropping.
The price of gold has soared to an all-time high of $855.10 an ounce driven by the weak dollar, rising oil prices and geopolitical concerns.If Gold continues its price rise at even half that rate, then surely the next economic milestone (now that Oil has breached $100 pb) would be $1000 Gold (per ounce).
Oil prices have also jumped, with US crude gaining $2.42 to $98.40 a barrel and London Brent up $2.64 at $96.49.
Gold, which becomes cheaper for holders of other currencies when the dollar weakens, is seen as a haven in times of uncertainty and oil-led inflation.
Other metals prices have also risen, with platinum also at a record high.
"Certainly the safe-haven bid, weaker dollar and credit market turmoil has been favourable for gold, and oil hitting $97 is not doing it any disservice," said David Thurtell at BNP Paribas.
Gold prices rose more than 30% last year.
Gold rose 30% in 2007. If it repeats that performance this year, then it should reach $1100. Oil rose from $60 to $100 in 2007, an increase of two-thirds. If it increases at the same rate we'll see $166 per barrel by the end of 2008.
These aren't predictions, but I would say that both gold and oil still have a lot further to go before they reach a record high and begin dropping.
2 comments:
Oil rose to how high? :-)
Must be the weather...
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