A prominent hedge fund manager claimed today (August 7th) that Gold Prices could reach record levels before the end of 2009, Stock House reports.

The yellow metal achieved an all-time high of $1,030 per ounce in March 2008 and has since unsuccessfully threatened to push through that barrier again on a few occasions.

Now John Lee, who manages a fund at Mau Capital Management - the firm he founded in 2004 - has explained that $1,500 per ounce gold is a possibility in the remainder of the year.

"Gold indeed took a breather while allowing commodity and equity markets to catch up," he told the news provider.

"Now with crisis talk receding, inflation and deficit concerns will return to center stage. I look for gold to first break out of $950 by September, and rocket past $1,000 by end of October."

Meanwhile, the European Central Bank and 18 of its counterparts announced today that they will sell no more than 400 metric tonnes of gold per year until September 2014.

John Reade, an analyst at UBS, which is the world's largest manager of private assets, explained in an interview with Bloomberg that the news is "positive" for anyone with a Gold Investment.

"[This] removes the small chance that European central banks would have dumped gold onto the market in an unconstrained manner," he told the news provider.

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Goldbug, 08 Aug '09

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