Israel attacking Iran could send gold $500/oz higher, says Murenbeeld
By: Matthew Hill 5th March 2012
TORONTO (miningweekly.com) – Gold prices could jump by $500/oz “in a day or two” were Israel to attack Iran’s nuclear sites, Dundee Wealth chief economist Martin Murenbeeld said on Sunday.
“There was a news item [this weekend] that Iran thinks the price of oil would go over $400/barrel if they did that, because they’d close the Strait of Hormuz. If oil goes to over $400 we’re looking at gold well over $2 000/oz,” Murenbeeld said in response to a question.
Speaking to reporters, he said the speculation was a “pure guess”, but that such a move would not be as dramatic as oil surging from the current price around $124 a barrel.
Gold closed on Friday at $1 713/oz.
Murenbeeld in an earlier presentation at the Prospectors and Developers Association of Canada convention in Toronto said that factors such as monetary “reflation” and geopolitical tensions could lead to higher gold prices, with a potential global recession and the possibility of rising US interest rates after 2013 tempering the outlook.
He forecast the precious metal would average at $1 942/oz in 2012, closing the year at around $1 950/oz.
Israel has been threatening to pre-emptively strike at Iran’s nuclear sites, where Prime Minister Benjamin Netanyahu argues the country is developing nuclear weapons. Tehran has maintained it is developing nuclear technologies only for civilian purposes.
