The question of where gold prices are heading in 2009 is on the minds of traders, investors and miners. Of course, gold speculators think they are always one step ahead, so we can exclude them in our short discussion.
According to economic forecasters, price of gold will move sideways in the first two quarters of 2009, and then rise up sharply, ending the year near the $1200 per ounce mark. Should any great geopolitical turbulence hit earlier, the price will rise sharply.
The greater impact on gold price in 2009 will come from the state of the US economy, and more specifically, from the euro-dollar exchange rate. In the recession, gold is not expected to do well. However, if the price of stocks continues the downward slide, the amount of liquidity entering the market will make gold price to rise over time.
