Will gold hit an all-time high in 2007?

Recent price action for gold has been encouraging, but what will it take for the gold price to hit a new high? The Onassis team look at why the market's looking so good.

Gold bullion price action has been very encouraging, most recently exceeding $650/oz, above which we expect to see a sharp increase in buying. Some time in 2007 last year's gold price high of $730oz should be tested and if that test is successful, then yes' it is quite possible that the all-time high of $880oz could be achieved. Whether or not it happens this year remains to be seen, but that it will actually happen at some time in the future, is we think, a dot on the card a consequence of global liquidity and the lack of fear.

The bull market for gold bullion started in January 2001, since when it has very significantly out-performed the Dow Jones.

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