
The investment case for gold has become increasingly compelling with the Central Bank of London buying and a structural change in interest for gold as an investment product among retail customers,according to the latest research from Standard in London.
"Although the update will be capped by lower jewellery demand,the increased availability of scrap gold as prices surge to new highs and a periodic dollar strength in the first half of 2010,will see gold moving higher to average US$1,300/0z in Q4-2010 once the dollar resumes its weakening trend," said Helen Henton,global head of commodity research at Standard Chartered.
Gold has averaged US$955/oz so far the year.
In its Commodities Quarterly report, Standard Chartered also forecast that corn and palm oil are likely to benefit from firmer energy prices in the second half of next year.
It also said that after plummering in Q4-2008,commodity prices have performed well this year.
Crude oil prices are also up 74 percent but,but the energy complex as a whole is down this year as natural gas prices have been weighed down by a massive oversupply.
BERNAMA-Tuesday, November,2009