2010 could be the high water mark for gold prices, at least for the next couple of years, says a new report from Versant Partners.
"We forecast gold prices to average US$1,025/oz in 2010, US$975/oz in 2011, and US$800/oz on a long-term basis," analyst Anthona D. Curic said in a note to clients.
Noting that gold prices are driven by emotion as much as supply and demand, Ms. Curic said concerns about the US dollar combined with inflationary pressure and global economic weakness will continue to support the gold price through next year.
Beyond that, however, she expects gold to fall as the economy recovers.
"This long-term price is a normalization to marginal costs of production," she wrote.