Gold, Precious & Base Metal Plays

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Specialists: Gold prices will stay afloat -

International gold prices will remain stable in the mid and long term, said specialists at the International Gold Mining Seminar held in Buenos Aires.

In the next six months, the price of gold will fluctuate between US$610/oz and US$720/oz, according to London-based GFMS Metals Consulting.

"The price of gold could possibly fall to a sustained US$600/oz and then rise to nearly US$700/oz," GFMS president Philip Klapwijk said.

However, Klapwijk highlighted that possibly in six months the price could reach a nominal record of US$850 that may last into 2008.

Klapwijk also expects to see in coming months "a renewed wave of interest from gold investors... Investor interest is going to grow in the first few months of 2007. It already appears to be happening," he said.

The analyst considers the military conflict between the US and Iran to be a risk factor influencing the healthy price performance of the metal.

But Gerardo King, senior manager of South Africa's Standard Bank, was more cautious. He forecast that 2007 would bring increased - but highly volatile - gold prices.

According to King, gold dropping below the US$600/oz mark could spark a long-term price projection of less than US$500/oz.

The average price of gold between January and October 2007 was US$600/oz, according to GFMS figures.