Business
Logo
 

Gold to hit $1,000 mark; Oil likely to strike $100

Haseeb Haider
Filed on May 13, 2006

ABU DHABI The gold will continue to glitter by year-end, as its prices are likely to hit $1,000 per ounce from $704 level, while prices of black gold Oil will touch $100 per barrel even if the current Iran stand-off is resolved, claimed Mehmood Suliman-Rey, Division Head MENA & Asia of Switzerland's, Liechtensteinische Landes Bank (LLB).

"While commodity strategists were cautious in price projections for gold and oil, LLB stood-out with a right forecast since past one-year... the price behaviour is even better than what we had indicated," Mehmood told Khaleej Times yesterday. He said that silver will hit $25-26 per ounce by year-end.

Speaking about reasons for the current price scenario which can undermine global economic growth, he said oil demand is slowing in China against all predictions, however, the economies of China and India will continue leading other comparatively smaller Asian economies and oil would be the fuel they will need to grow. On the other hand, with middle class growing, and purchasing parities increasing, gold will continue to be ideal commodity in those economies.

Mehmood said that during the last one year, gold prices have gone up by 65 per cent, silver up 106.24 per cent, aluminium prices climbed up 68 per cent, while copper rose by 177 per cent, as per the forecast.

Commenting on the heavy fluctuations on the domestic securities markets, he advised caution to the investors with large exposure to shares and securities.

He said LLB had successfully launched two investment funds for investors, who want to sustain their gains in the long-term. Black Gold Capital Protected note, he said was a three-year maturity paper, with 100 per cent capital protection at maturity. The paper which is hedged against US dollar, has a low investment entry level, as with a minimum $100,000 investment. He said investors can benefit from a secured product which is invested in commodities with a ratio of 75 per cent (indicative) in a basket containing 50 per cent gold and 50 per cent crude oil. The issuer is ABN Amro Bank, with Moody's Aa3, S&P AA- (double a minus) ratings. The other product, Commodity Linked Note on a Metal Basket, he said the investments of this product are made on a metal basket which contains gold, silver, copper and aluminium with each having a weightage of 25 per cent.





ERROR: Macro /ads/dfp-ad-article-new is missing!
MORE FROM Business
MORE FROM Khaleej Times
CurrentRequestUnmodified: /apps/pbcs.dll/article?avis=KT&date=20210118&category=ARTICLE&lopenr=210119022&Ref=AR&fbclid=IwAR0BIglMTxrtGT-wMOVkuZXoXAd88HtNDzYYL5mXukqXBx69S1Q6QP9ZlcY&profile=1036 macro_action: article, macro_profile: , macro_adspot:
 
khaleej times - Vat in UAE -->
 
 
 
KT App Download
khaleejtimes app

All new KT app
is available
for download:

khaleejtimes - android khaleejtimes - ios khaleejtimes - HUAWEI AppGallery