James Turk, the founder of GoldMoney.com, and expert on gold was on Canadian Television this week predicting the gold price would hit US$600 in the first quarter of 2006, and US$900 before the end of 2006.
Bill Murphy of GATA.org (Gold Anti-Trust Action Committee), predicts the gold price will reach US$1,000 an ounce by the end of 2006.
When considering these gold price predictions for 2006 it is worth keeping in mind that in today's $ based on inflation gold would have to hit $2200US to be equal with the all time high of $875 reached in 1981.
Newmont Mining's President Pierre Lassonde has publicly declared he expects prices to be around $525 in January 2006. Newmont's president said gold "may rise to more than $1,000 an ounce in the next five to seven years as demand growth driven by Asia outstrips global supply."
Now for some Top Financial Firms Gold Price Predictions for 2006
The main stream media seems to let these "Top" Financial Firms get their predictions for the gold price wrong time and time again without saying anything. Lets see how they go in 2006, considering the gold price recently hit $540 US.
UBS raised its 2006 forecast for gold to $520. UBS said in a report in the Australian Investment Review "Gold's fundamentals also look stronger than previously expected, as supply and demand fundamentals and investment demand all appear stronger than previously anticipated."
Merrill Lynch has upgraded its gold price forecasts by 19% to US$525/oz in calendar 2006, as reported by Reuters in an article titled Gold seen marching into 2006 with fanfare,
Maquarie has increased its gold price forecast by around 8% to US$516/oz. for 2006, as reported in the Australasian Investment Review, in an article titeled, Macquarie Upgrades Commodities Prices (Again).
J.P. Morgan Securities have lifted its long-term gold price forecast to $500 an ounce from $450, with an average price of $558 in 2006, as reported by Reuters in an article titled Gold seen marching into 2006 with fanfare
Barclays Capital expects the gold price to average Dollars 465 in 2006 before falling to Dollars 450 in 2007 and Dollars 440 in 2008. Kevin Norrish, head of commodities research at Barclays Capital, said "We don't believe the current rally is sustainable. There is no shortage of gold and we don't see any evidence that central banks are going to start increasing the amount of gold in their reserves."
Stephen Briggs, economist at SG Corporate and Investment Banking, has forecast average prices at $515 in 2006 and $550 an ounce in 2007, as reported by Reuters in an article titled Gold seen marching into 2006 with fanfare
Kevin DeMeritt of goldcentral.com provides more gold price predictions for 2006.
Please post your own gold price predictions and forecasts for 2006 as a comment below.