Shayne Heffernan of Ebeling Heffernan has predicted Gold to hit $1300 in the near term, and may see $1800 in 2011.

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, the World Gold Council said Aug. 25. Investors bought 291.3 metric tons of the metal in exchange-traded funds, or ETFS, the second- highest quarter on record.

Goldman Sachs Group Inc. forecast earlier this month that prices may reach $1,300 in six months and Deutsche Bank AG said June 3 that the metal may surge to $1,700 as currencies slump. The euro fell to a four-year low versus the dollar in June.

In India, the biggest gold user, demand almost doubled in the first-half on increased jewelry purchases and investments, the council said Aug. 25. Imports by the country this year may equal 2009’s level as early as this month because of “robust” demand.

Shayne Heffernan is of the opinion that India is going to see solid growth in 2010 and 2011 adding to the demand for Gold.

Posted by Shayne Heffernan on Aug 28th, 2010and filed underEquities, Latest News, Limelight, Markets, News & Events, Shayne Heffernan.You can follow any responses to this entry through theRSS 2.0You can leave a response by filling following comment form or trackback to this entry from your site