The AMEX gold bug index has been trending lower after bumping up against the 50 day moving average last week.

Analysts Predict Gold To Surge Toward $1000

"I would be surprised given the scale of the economic crisis if gold doesn't scale above $1,000," he said ahead of the London Bullion Market Association annual conference in the ancient Japanese capital of Kyoto.

"In terms of core trading range for us, I have to say that gold going up towards the $1,000-level is not an impossibility at all," Paul Walker, CEO of GFMS.

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Barrick Gold Corp. Chairman Peter Munk forecasts "Large Scale Buying Of Gold".......

``That impact on holders of U.S. dollars in China or Russia or Abu Dhabi or Kuwait is that they're going to say, `What is that going to mean for the U.S. dollar, and what alternative are we going to have?''' Munk said in an interview in New York. ``So gold is going to have very powerful support.'' Munk, 80, founded Toronto-based Barrick in 1983 and made it the world's largest gold producer.

Spot gold was at trading $889.75/892.75 an ounce (1905 GMT), down 1.2 percent from gold's Monday close of $900.20.

U.S. gold futures for December delivery settled down $17.80, or 2 percent, at $891.20 an ounce on the COMEX division of the New York Mercantile Exchange.

Investors flock to Gold ETFs

Investment in the SPDR Gold Trust, the biggest exchange- traded fund backed by bullion, jumped 11% last week to 679.6 metric tons as volatility surged in financial markets.

Mark O'Byrne, managing director of brokerage Gold and Silver Investments Ltd. in Dublin.....``By the end of the year, I think we'll be looking at $1,000 an ounce, because of the extent of the physical demand,'' ........``We can't keep up with the funds ringing. We've never had demand like it.''

Comex raised margin payments on gold and silver futures by as much as 47 percent after price swings accelerated.

The margin rate for Comex members advances to $5,500 a gold contract today from $3,750, the exchange said in an e-mailed statement late yesterday. The new rate for non-members is $7,425, compared with $5,063. One contract represents 100 ounces.

For silver futures, members will pay a margin rate of $6,000, compared with $5,000 previously. Non-members will pay $8,100, up from $6,750. One silver contract represents 5,000 ounces.

LONDON (AFP) — Gold prices rebounded Monday as the precious metal won support amid ongoing uncertainty stemming from the collapse of US investment bank Lehman Brothers, dealers said.

On the London Bullion Market, the price of gold rose to 785.70 dollars per ounce, from 750.25 late on Friday.

In contrast, crude oil prices slumped Monday as investors feared that slower economic growth would dampen future energy demand.

Gold, which is used in jewellery, dentistry and electronics, is widely regarded as a safe store of value amid economic gloom.

Note the breakout point for gold during October 2007.

Gold prices moved higher after testing the $750 level last week, indicating strong technical support at this level.

Gold moved higher on Friday as the US Dollar declined on weak retail sales data.



U.S. gold futures for December delivery settled up $19.00, or 2.6 percent, at $764.50 an ounce on the COMEX division of the New York Mercantile Exchange.

Gold bounces off support at $750 amid a weaker US Dollar and rising oil prices.