Gold News

Gold prices 'will reach new high'

The president of a major US gold bullion dealer has predicted that gold prices will reach new highs in the coming months.

Greg McCoach, head of AmeriGold, has been investing in gold for the past eight years and regularly writes for the Mining Speculator newsletter and investment website Gold World.

Now, in an interview with the Gold Report, he has claimed that impending financial meltdown in the US will see gold prices soar past levels experienced earlier this year.

He said: "When the bad news regarding Fannie Mae and Freddie Mac hit in July, gold began to rise rapidly and hit the $980 level before levelling off.

"This move in gold was premature to the bigger events that will soon be unfolding and taking gold to the next new high.

"I think the Fed is propping up the dollar in preparation for the financial tsunami that's about to strike. This would explain why the dollar made an unexpected leap of five per cent in the last two weeks, and why gold isn't moving as expected."

Meanwhile, Agnico-Eagle Mines chief executive officer Sean Boyd has predicted that gold prices may rise to $1,250 per ounce as the tough economic conditions continue.

Speaking to investors in New York, Mr. Boyd explained that increased demand from European, Asian and Middle Eastern buyers will also play a crucial role.

He said: "It's not a stretch to say that it could go up 50 per cent from these levels. The debt, the deficits, nothing has changed.

"The credit crisis has not gone away - in fact it probably will continue, so there are compelling arguments to own gold."

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