>> Saturday, November 15, 2008
Gold may jump above $1,000 an ounce in 2011 as global mine output drops, mining costs rise and demand increases, Morgan Stanley said. Mining production actually peaked in 2001 and has since been declining, the bank''s commodity analyst Hussein Allidina said in Singapore. "When I look at the demand side, as income growth accelerates, the consumption of gold for jewellery purposes increases.
Gold climbed more than double in the past six years and reached a record $1,032.70 an ounce on March 17 as the dollar slumped and oil advanced, increasing concerns that inflation would accelerate. In the past eight months, the precious metal plunged 31 per cent as the dollar rallied, oil collapsed and the global credit crisis pushed the world toward a recession.