In December, the monthly average price of gold exceeded $400 per ounce, its highest level since 1996. Investment demand, driven by increasing global geopolitical risk and dollar weakness, helped propel the price of gold higher by over $70 per ounce in 2003. In addition, hedge unwinding by gold producers and limited gold production also underpinned gold prices.
In 2004, the price of gold is expected to continue rising, reaching levels comparable to those seen in the early 1980s during the last oil price shock. Factors that pushed gold prices higher in 2003 will again drive gold prices higher in 2004.
Most important for gold prices will be the strength of investor...
