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Tuesday, 31st October 2006 (5061 views)

Prolonged interest in gold from a "professional market alone" would be sufficient to propel gold prices to the $730 (£384) per ounce high of May and beyond, according to an expert.

At present, gold prices are hovering around the $600 (£316) per ounce level and for the level to rise to above $700 (£369), Paul Walker, chief executive of precious metals consultancy GFMS, insisted that sustained interest from retail investors would be needed.

Speaking to Reuters, Mr Walker referred to possibility that spot gold prices could again reach the record high that was hit in January 1980.

"It is still possible that we will see the previous high of $800 to $850 (£421 to £447) […] But it's becoming a little more difficult in the current economic environment to say that as strongly as one might have said eight months ago," he said.

Mr Walker then added: "Just a professional market alone will drive gold prices up to $730. You need retail investors in this market to see the previous high again."

At 11.30 GMT on October 31st, the price of spot gold stood at $602.4 to £603.4 (£317 to £318).

 

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