Madison Avenue Research Group yesterday said its outlook for gold remains "extremely bullish".
In its 2007 update and 2008 gold price forecast, it said its outlook as expressed seven months ago was shared with Louise Yamada, managing director of Yamada Technical Research Advisors in New York.
The former head of technical research at Citigroup, Yamada predicted that gold would surpass $730 (about R5024) on its way to $3000 within a decade.
"Gold is the purest play against the dollar," said Yamada.
Regarding its 2008 gold price forecast, Madison Avenue Research Group said its near-term forecast on gold echoed that of JPMorgan analyst Robin Wilkin, who said he was bullish on the metals complex and bearish on the dollar.
"I am still in the camp that believes that we will work towards $775 to start with, then $800 and then we could head up towards $850 at some stage," said Wilkin.
Investment bank Morgan Stanley said last week in its 2008 gold price forecast that it expected gold to average $800 an ounce in 2008 as it benefited from strong global growth and spreading inflation problems. - I-Net Bridge