GOLD ‘MAY JUMP TO $1,300 THIS YEAR’

Gold prices are higher on the New York Spot Market as of 10:51 a.m. EST after a downward revision in U.S. GDP and comments from Federal Reserve Chairman Ben Bernanke regarding the U.S. economy. Mr. Bernanke pledged the Federal Reserve will do ‘all it can’ to ensure a U.S. recovery. “The Committee is prepared to provide additional monetary accommodation through unconventional measures if it proves necessary, especially if the outlook were to deteriorate significantly,” the Fed chairman said. Many analysts have been predicting the Fed will pursue a strategy of additional quantitative easing, which could be bullish for gold. (Bloomberg, 8/27/10)

Stocks are up on the New York Stock Exchange, rallying after the Dow dipped below 10,000 on Thursday. "Economic growth was lowered, but the downward revision wasn't as sharp as we were expecting, so that's being perceived as a positive sign," said Art Hogan, chief market strategist at Jefferies & Co. "We also saw that consumer spending was revised higher, so there are some silver linings in the report." The government revised its reading of second-quarter gross domestic product to 1.6%. That was down from the previously reported 2.4%, but still topped expectations. (CNN Money, 8/27/10)

GFMS, a internationally renowned precious metals consultancy has published a report stating that gold is headed for a 10th annual gain and may reach at least $1,300 an ounce this year as investors seek a shield against financial turmoil, weak currencies and inflation. Earlier the World Gold Council said that bullion demand increased 36 percent in the second quarter as investors boosted purchases of gold-backed funds and pushed up prices to a record during Europe’s sovereign-debt crisis. (Gulf News, 8/27/10)