Analysts see gold at $US500

Press, 6 August 1987, Page 30

Analysts see gold at $US500

NZPA-AAP Sydney Resource analysts forecast gold will jump to SUSSOO (SNZB9O) an ounce within the next three weeks, and some say it may climb that high within the next week* Gold, which is currently leading the Australian sharemarket by the nose, finished in Sydney on Tuesday at SUS47B (SNZBSO) an ounce — about SUSI 4 (SNZ24) above its last close of $U5463.75/464.25 ($NZ825.47/826.75) in New York.

The rise takes its gains to almost SUS3O ($NZ53.70) in the past three weeks after a long period of stagnation around the SUS44O ($NZ783.20) to SUS4SO ($NZ801) level. Ord Minnett resources analyst, Mr Norm Mis - elly, said gold had consolidated its base by being at that level for so long, and this provided the springboard for the current increases. “It is only SUS 22 (SNZ3».I«) away from SUSSOO now and just needs a compounding of

hostilities (in the Middle East) to see it do that in the next few weeks,” he said. Mr Miskelly said any lessening of tensions between Iran and the conservative Gulf States would probably cause another consolidation at higher levels, not a fall. Another broker predicted gold would hit SUSSOO within the week or, if not, some time this month, depending on what happens in the Gulf. The forecasts suggest further gold-led gains on

the Australian sharemarket Gold’s continuous run ahead in the past three weeks has seen the market post one record close after another. Bain and Co. resource analyst, David Talbot, said gold leaders should continue to power ahead, but explorers and the more speculative end of the market would attract little attention.

But one broker was not so optimistic. He said he doubted whether bullion could hold its present levels