John Meyers Gold Quotations

Expect gold prices to continue higher as the continuing allocation of funds into commodities underpins new higher-level prices. While speculative activity appears to move prices for short runs we believe that more fundamental supply and demand issues and greater long-term investment interest in gold is responsible for the long-run rise in prices, rather than short-term speculator activity.

Oil market profits are being diverted into gold in some instances as oil traders look to bank profits in this area, preferring gold as a potentially more stable alternative investment.

Gold is in a consolidation phase. The fundamentals of gold remain relatively firm, so prices will edge higher.

Five-hundred dollars an ounce is still a great margin for gold producers, particularly in Russia. Rising cash costs around the world means that Russia stands out.

It is possible for gold to push through US$600 an ounce. Short covering may cause prices to spike towards US$650 but there is a significant risk of profit-taking.