GOLD AT $1,500 IN 2010 ‘VERY REAL’

Gold prices are treading water on the New York Spot Market as of 10:38 a.m. EST on mild profit taking after the yellow metal rallied to a two-month high. Gold’s earlier price gain was bolstered by further safe-haven related bids. Gold’s chances of rising above $1,500 an ounce are “very real” and prices may go even higher, Petropavlovsk Plc Chairman Peter Hambro said. The metal is “wealth insurance,” Hambro said on Bloomberg Television’s “On the Move” with Francine Lacqua. Analysts raised their 2011 gold forecasts more than for any other precious metal in the past two months, data compiled by Bloomberg show. Gold may rise to as high as $1,500 next year, according to the median in a Bloomberg survey of 29 analysts, traders and investors. (Bloomberg, 9/1/10)

The rally on Wall Street continued Wednesday after a report showed an unexpected rise in U.S. manufacturing activity, which added to earlier optimism over China's strong manufacturing report. In addition, stronger-than-expected economic growth in Australia helped fuel optimism about the global economy. (CNN Money, 9/1/10)

Sovereign debt worries will continue to plague the financial markets for the next 10 years, according to Andrew Milligan, the head of global strategy at Standard Life Investments in London. “There are significant long-term risks from high levels of public debt sector debt," Milligan told CNBC Wednesday. "In particular, there are potential funding problems, crowding out effects and sovereign debt rating concerns for a decade to come. Even in, say, 2015, a number of countries will face worryingly high levels of public sector debt," he said. "Governments also need to address the additional problems of unfunded liabilities.” (CNBC, 9/1/10)