Citigroup says long-term gold price could double or even triple

Citigroup suggests that inflation and the fabrication outlook favor gold.

by Dorothy Kosich

Monday, June 30, 2008

www.mineweb.com

RENO, NV -

--------------------------------------------------------------------------------

Citigroup forecasts that "gold is likely to regain $1,000/oz by end-08 and to work higher through 2009-2010."

In their recent Gold Commodity Update, Citigroup metals analysts John H. Hill and Graham Wark also predicted that "longer term, we believe that gold is capable of doubling or tripling from current levels."

The Citi global metals forecasts have an upward bias, at $906/$950/1000 average in 2008/09/10.

The analysts said "secular and seasonal factors favor gold" during the second half of this year. "We remain positive on gold, based on macro and supply/demand factors. The forces that have propelled gold for 5 years are firmly in place."

During the second quarter of this year, gold has averaged $896/oz, up 34% from the same quarter of 2007 and down 3% from the first quarter of this year. "Following a series of downside fundamental tests gold appears to have found a floor, and quietly climbed back to $917/oz."

Three Israelis are dead and 46 others were injured when an East Jerusalem Palestinian man purposely plowed his tractor into a crowd of pedestrians and overturned two busses in downtown Jerusalem.

According to France 24 TV, an organization called The Movement to Liberate the Galilee has taken responsibility for the attack. The same group claimed responsibility for the attack on the Mercaz Harav religious seminary in March in which eight students were murdered.

G.R. article Editors note:
We bring to the attention of our readers David DeBatto's scenario as to what might occur if one of the several contingency plans to attack Iran, with the participation of Israel and NATO, were to be carried out. While one may disagree with certain elements of detail of the author's text, the thrust of this analysis must be taken seriously.

Iran strike in the air as US and Israeli military chiefs meet

Martin Chulov, Middle East correspondent | June 25, 2008

Tensions were further heightened by a suggestion from former US ambassador to the UN John Bolton that the US and Israel could attack Iraq's fledgling program between the time a new president was nominated in November and the date the incumbent, George W. Bush, left office in January.

Mr Bolton's remarks signal the first time a regime figure from either country has been prepared to put a time frame on a mooted strike. They also mark a sharp escalation in Israeli-US rhetoric against the Islamic republic, which is refusing to bow to international demands that it stop its nuclear program, and its efforts to enrich uranium.

___________________________________________
Project Management/Idaho Facility Management
Site Wide Program

Subject: FW: Notice on Rear Window of Your Car

FYI
Just last weekend on Friday night we parked in a public parking area. As we drove away I noticed a sticker on the rear window of the car. When I took it off after I got home, it was a receipt for gas. Luckily my friend told me not to stop as it could be someone waiting for me to get out of the car. Then we received this email yesterday:

'WARNING FROM POLICE
BEWARE OF PAPER ON THE BACK WINDOW OF YOUR VEHICLE--NEW WAY TO DO CARJACKINGS (NOT A JOKE)'

by Lawrence Williams
www.mineweb.com
Friday, June 6, 2008
LONDON -

Commentators around the world are beginning to turn less pessimistic on the global economy, and as Ben Bernanke decreed that dollar devaluation is not US policy, the gold price took a serious knock last week. But, the decline halted above the critical $850 mark and underlying strength seems to have appeared at around the $880 level, as the beginnings of another upward creep seem to be in progress.

Traditionally late spring/early summer can prove to be a weak time for the gold price as US traders and bankers' thoughts turn to summer holidays in the Hamptons, Caribbean and further afield, and some European centres seem to virtually shut down for a full month or more, so it would be unwise to bank on any major price movements until late August or beyond - if then. But the overall fundamentals for a price increase are still present and many analysts, even conservative ones, are looking for the $1,000 an ounce level to be breached again later in the year.