Kovalam, India - Gold prices likely to score a record high of approximately eightpercent will be corrected next month. But this precious metal could also rally upto USD2.400 per ounce next year as investors sought refuge amid investmentglobal economic turmoil.
"Trees do not grow to heaven. I think the buyers (of gold) should be cautious,the market is in a 'caveat warning'," said Head of Global in Munich FCStone,Jeffrey Rhodes, during a press conference in India, quoted by Reuters onSunday (21 / 8 / 2011).
Known, the international gold price reaches record high print USD1.877 perounce on Friday. The price of gold is still the potential to strengthen in thismonth within a year in August and reap the greatest gains in the past weeksince early 2009.
Rhodes said that gold prices will probably go back ambles to USD1.725 next month, and then going back to rally the following month.
"The problem is, people buy gold and they do not understand why they arebuying gold and it's a big problem. This is a classic symptom of a bubble," said Rhodes.
He also added that there is a real shortage for investors to cash in their goldholdings to cover losses in equity markets.
Just for information, on Friday the global equity market slump and recorded the second highest gold record as concerns the possibility of economic collapsethe United States (U.S.) into recession and concerns related to the debt crisisof Europe.
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