Gold for immediate delivery climbed to a record $1,921.15 on Sept. 6 and is heading for an 11th annual consecutive gain, the longest winning streak since at least 1920 in London. Prices more than doubled since the end of 2007 as stock markets slumped, economies contracted and central banks and governments pumped more than $2 trillion into the global financial system.
“The last few weeks there has been a flow back into physical gold,” Norrish said. “Gold will continue in its current environment. It’s a volatile haven. We think it will trade above $2,000 an ounce before too long and will move higher.”
Bullion fell $53.38, or 3 percent, to $1,728.97 an ounce at 3:42 p.m. in London trading.
Gold prices may be at risk from an increase in holdings of exchange-traded products, Norrish said at a separate conference in London today.
“Investors have a large amount of gold,” Norrish said. “It may well be that a lot of it gets dumped on the market” when the opportunity costs of holding gold change, he said, referring to interest rates.
To contact the editor responsible for this story: Claudia Carpenter at firstname.lastname@example.org