"The effects of the sub-prime credit crisis continue to provide a strong investment case for gold,'' Klapwijk said on Wednesday at a conference here. Increasing inflation concerns and declining US interest rates will put "an already weak dollar under further pressure,'' he said.
Gold mine production and central bank sales will remain flat this year, Klapwijk said. Overall gold supply may rise between 1 and 2 per cent due to higher scrap recycling, he said.
Still, "in the medium term, a weaker price is possible, with lows between $800 and $850 an ounce.''
