Gold will average $1,290 an ounce in 2010
Gold will average $1,290 an ounce this year as spending by governments spurs inflation, stoking demand for the metal as a hedge against eroding values of other assets, according to broker GoldCore.
Prices will climb from an average $1,290 an ounce in the current quarter to $1,390 in the year’s final three months, Executive Director Mark O’Byrne said in an e-mail today.
The metal for immediate delivery averaged $973.67 last year and climbed to a record $1,226.56 in December as a drop in the dollar spurred demand for the metal.
“Rather than concerns about the value of the dollar per se, it is more a concern about the value of all fiat paper currencies and consequent inflation concerns due to unprecedented loose monetary and fiscal policies” that will lift prices this year, Dublin-based O’Byrne said.