Philip Klapwijk, executive chairman of Gold Fields Minerals Services, a major consultancy based in London, gives his thoughts on the gold market in an interview with resourceinvestor.com. Mr. Klapwijk is not especially concerned with gold’s recent price drop, having thought that gold had “run too far too fast.”
He sees not only the chance of a fourth quarter rebound but also “a stream of bad news for the U.S. dollar, news that will also lead to perhaps a higher oil price environment again, and cuts in U.S. interest rates I think will be on the cards before the end of the year quite potentially.”
Yet when asked about $850 gold before year end, he answered: “I think that’s a tough call because I do believe that we will have a period of weakness now. But I would say if we were to extend the analysis into early 2008, I would be very surprised if gold does not within the next three months have an attack on that $850 level again, and I think surpass it.”
Resourceinvestor.com noted that according to the World Gold Council’s ‘Gold Demand Trends Report’ that was just released, gold demand was at a record high in the third quarter.
Meanwhile, the investment banking arm of the Royal Bank of Canada says that gold could see $900 the first quarter of 2008, with a continued declining dollar being the reason.