Gold price could soar to $1,200/oz this year: analyst

摘要

The recent strength of the gold market has been fueled principally by a surge in investment buying, with positive market fundamentals - trends in mine production, secondary supply and fabrication demand - playing a minor supporting role, according to Gold Review & Outlook - March 2008 by American Precious Metals Advisors. Although supply and demand factors are important, "price developments in the short-to-medium term have less to do with these fundamentals and more to do with market sentiment, monetary policy and inflation trends, geopolitical events and the resultant changes in investment and speculative demand at the margin," said the report.