On Tuesday, the gold price hit record territory for the year at US$1 269 (P8 667) per ounce, from US$1 126 when the gold ETF listed on the Botswana Stock Exchange (BSE) on July 13. Experts believe the gold price could end the year at US$1 300 and beyond, driven by a variety of factors.
Chief among these is the gold's status as a safe haven for investment in financially unsteady times. With continuing uncertainty about a sovereign debt crisis in Europe and the US dollar sliding as an asset class due to unstable American recovery, investors are moving their funds towards gold, driving the precious metal's price higher. Goldman Sachs, a global investment banking and securities firm, predicts that gold will end the year around US$1 350 per ounce based on low worldwide interest rates. Canaccord Adams, a Canadian banking group, estimates that the metal will end 2010 on US$1 425 per ounce based on the fact that the global stimulus packages are devaluing currencies and gold has become a popular way to hedge and invest.
