Gold could test new highs - GFMS

In an interview on Radio 2000 @ 18:50 on Monday, 12 September 2005

[miningmx.com] -- Spot gold prices on Monday surged to a nine-month high of $451.88 an ounce, with a number of factors supporting the price, according to an analyst.

"I think it's partly a function of the dollar and partly the very good, strong fundamental demand for the metal," Paul Walker, a director at GFMS said, saying that the prices should be seen against a backdrop of "general uncertainty."
Gold is reasserting itself
Bloomberg News today published the results of survey it conducted, whereby 24 of 35 traders, investors and analysts surveyed urged investors to buy gold on the back of increasing demand from jewellery makers.

A rally above $458.70 would see gold reach a 17-year high - the highest price since June 1988.

"A lot of people have written off gold far too often," Walker said, speaking on the Moneyweb Power Hour boradcast on Radio 2000. "Gold is reasserting itself in financial asset classes and will continue to do so.

"Looking ahead, we have a very positive view for gold," Walker added.