Gold prices to stay above $900

Now is the time to sell you gold and get top dollar for all Cash For Gold at www.cashkit4gold.com. Gold prices are averaging $913/troy ounce in the first quarter, according to market calculations by Purchasingdata.com, and at least one analyst forecasts gold prices to rise even higher as the year moves along.
Goldman Sachs Group sees a $930 average for the next two quarters and then moving toward $950 in the last quarter. The New York bank’s forecast is based on sustained strong purchasing by gold-backed exchange-traded funds (ETFs).

“Should real interest rates move lower or buying by gold ETFs continue at its current torrid pace, however, the upside risk to prices would be significant,” Goldman Sachs analysts tell clients in note reported by Reuters. Low real interest rates decrease the rate of gold mine production, which typically boosts gold prices.

Earlier in the week, Reuters reported that buying of gold by ETFs, which back the securities they issue with physical stocks of bullion, has picked up pace since the Federal Reserve announced plans to buy $300 billion in longer-dated Treasuries on Wednesday, causing a fall in the dollar and spurring inflation concerns.
Purchasing.com reported earlier this month that 2009 gold prices will be inflated and erratic because of economic fears, various government stimulus programs and the flight of investments into precious metals as a safe haven. According to mining executives and fund managers at various conferences, the gold price was projected to be well above the $872/oz average of 2008.