Gold, oil prices to rise this year

Publish date: Fri, 03 Feb 2012, 02:39 PM
KUALA LUMPUR: Gold and oil prices are set to rise this year on positive sentiment for both commodities amid global economic slowdown,said Standard Chartered Bank.

Its consumer banking group wealth management chief investment strategist,Steve Brice, said the gold prices were expected to touch an average of US1,975 per ounce in the fourth quarter driven by four factors.

"They are high debt level in the West; negative real interest rate; high demand from China and India as well as central banks; and, limited supply for the precious metal," he said in a media briefing here today.

He said continuous uncertainty in global economy had boosted interest in gold as an hedging alternative against riskier investment.

He said the oil price was expected to rise to US100 per barrel in the second half of this year driven by the geopolitical risks in the Middle East and strong demand from emerging market, especially China.

"We didn't expect any significant decline in oil prices this year" he said. On equities, he said, the bank was putting a 'neutral' call on Malaysia's equity market.

Brice said the country's equity market had posted a strong performance last year on a relative basis.

However, he said, the equity prices had gone up since then and were more expensive now.

"We are not bearish on Malaysian equity market but we think that some regional markets are better pick," he said. -- BERNAMA
Discussions
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lotsofmoney

I do not trust ang mo's prediction. At best, they are 50% correct. At the worst, they bankrupt the whole country. Many examples of this reckless prediction. Paul, the octopus is much better.

2012-02-08 10:17

cmlooi

The last line sounds quite polite.

2012-02-08 21:14

lotsofmoney

you cannot be polite when you are bankrupt because of somebody like lehman brothers or madoff.

2012-02-09 08:58

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