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JP Morgan ups gold price forecasts
30/05/2002 09:30 - (SA)
London - JP Morgan said on Thursday it had revised its gold price forecasts for this year and 2003 to take into account gold's rally to its highest level in more than two years.
JP Morgan forecast gold would average $305 an ounce in 2002, higher than its previous forecast of $290 an ounce, and $325 an ounce in 2003 rather than $310 an ounce.
"We believe there is more upside opportunity in the gold price rather than downside risk in the medium term due to inevitable reduction in gold supply as mines age," said its gold analyst John Bridges.
Spot gold was at $324.15/324.65 an ounce in early European trading, having risen on Wednesday to a high of $327.30, a level not seen since October, 1999.
Gold has been fired higher mainly because of US dollar weakness, and tensions ranging from Kashmir to the Middle East and fears of a terror attack on the United States mainland.
- Reuters
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