Gold at $800 per ounce will spur demand
A decline in gold prices will substantially increase demand for the yellow metal, but not until it is about $800 per ounce, according to an analyst.
This is the ideal price for gold to become more accessible to a lot of consumers and investors worldwide, said James Steel, chief commodities analyst at HSBC Bank, who addressed the 6th Dubai City of Gold Conference.
Gold prices, however, could stabilise between $850 and $950 per ounce over a 12-month period as the weak US currency is seen to recover later in the year, according to other panelists at conference, which ended yesterday.
Steel said the price of gold would come down when global markets will have weathered the impact of a credit crisis in the US. He stressed that the current high prices of commodities have favoured the yellow metal.
