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Gold to $700 towards year-end - Georges Lequime, RBCM In an interview on Radio 2000 @ 18:55 on 17 January 2007 [miningmx.com] -- THE gold price could move to $700/oz before the end of the year, breaking out of a $625-$650 range in coming months, RBCM analyst Georges Lequime said on Wednesday. Gold has pulled back from a stiff fall in the past couple of weeks. “There’s a lot of anxiety about inflation in the market right now. There’s concern that US rates will be raised, which will be good for the dollar. It’s typically negative for gold,” Lequime said on the Moneyweb Power Hour week-nightly radio show. “Gold has weathered quite a big storm, the oil price has come down, commodity prices have been under pressure and we are looking for commodity prices to rebound in the short term and the US dollar not sustaining the strength we’ve seen going into the next few months,” he said. “We’re looking ahead to the buying ahead of the Chinese New Year (in mid-February), so we think gold will move back to the $625, $650 range and then before the end of the year towards $700,” he added. While there are rumblings in the market of central banks looking at buying gold, there has yet to be a major central bank doing so, he said. The euro and sterling were providing central banks for alternatives when it comes to diversifying out of the dollar, he said. Gold companies’ shares offshore markets have not lured investors and they are at their lowest ratings when measured on a price to net asset value basis. “It’s telling you investors are not interested in the stocks right now. There is a malaise in the market as far as gold shares are concerned,” he said. “That’s possibly the best time to buy them.”
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