Gold, silver to stay firm on inflation, global financial crisis

% Change

2006200720082006-072007-08 Gold60469587515.125.9 Silver13.3811.5516.5-13.742.9 Platinum11431305195014.249.4 Palladium32035543010.921.1  A correction in the gold prices below the $900-mark was well anticipated, necessary for the market to gain some breathing space. Given the seasonal lull in gold market often experienced during the middle months of the year, it is possible that a rally will not occur until the fresh booking begins by funds and consumers, especially from Asian countries led by India.  Silver prices are likely to shadow (but slightly underperform) gold. Industrial buyers have generally remained quiet. Speculative participation has been much reduced over the last month. Whether speculators will return to the market given its reputation for volatility is debatable, but any sign of upward movement may attract some momentum, the report said.  Overall, the average price for silver has been projected at $16.50 per oz for 2008, which implies a slightly weaker position as the year progresses.  The first quarter of the year for platinum, in particular, has been based around the metal's sensitivity to events in South Africa. This is likely to remain central to prices for the whole year. While energy sector will command the highest profile, the underlying issues of safety and labour shortage remain as real as they were last year.  In addition, with a continuing positive climate for investment and with risk aversion remaining a feature, platinum prices are forecast to remain positive in 2008. The metal is set to stay around $1,700 for the remainder of the year.  The price may move to a new high of $2,400 before the year-end. For the whole year, the review projects an average annual price of $1,950 per oz. For palladium, an average annual price of $430 per oz is projected, which is somewhat higher than the previous forecast of $385.  Globally, investments may continue to pour in gold as the preferred asset class.