After a vintage 12 months which has seen the price of gold (GC-FT1,207.10-11.20-0.92%) shoot up 60 per cent, the metal is likely to slip below $1,200 (U.S.) per ounce by the end of 2009 as investors cash in, a Reuters poll showed on Thursday.
In a survey conducted between Monday and Wednesday this week, 18 of 34 analysts, traders and funds said they expected prices to fall below the psychological marker.
The market's bullish tone is still seen remaining intact, however, as a quarter of those surveyed see prices ending 2009 in a $1,200-$1,250 range.
Despite price-supportive expectations for further dollar weakness and fresh emerging market central bank buying, the speed of bullion's rally to record highs above $1,225 an ounce has raised fears the market has gone too far, too fast.
“The massive long positions piled up on COMEX should be unwound to some extent. So, I think the market is somewhat in a weak bias toward the year end,” said Naomi Suzuki, senior analyst at SC Asset Management Co in Tokyo.
