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By Paul Farrow
"Notwithstanding the recent correction – and the possibility that gold may yet fall further before bargain hunters and other buyers (including central banks) reappear – the four pillars of gold-price strength remain intact.
They are inflation-fueling US monetary and fiscal policies; Central bank reserve diversification with the official sector being a taker rather than a supplier of gold in 2009 and the next few years; expanding retail and institutional investor participation in the United States, China, and around the world; and declining world gold-mine production.
We have consistently warned (and continue to do so) that gold’s advance would be marked by high volatility and occasional sharp reversals that would lead some to believe the long bull market in gold has ended – and we will continue to hold this view even if the metal falls back yet another $100 an ounce.
Looking ahead to 2010, don’t be surprised to see gold at $1,500 or higher by the end of next year."
Gold: how high will the price go in 2010?
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