The price of gold may jump back above U.S. $ 1000 for the weakening U.S. dollar and poor demand for other assets, but the market may fall if disinflation sets in, consultants GFMS said on Monday (14 / 9).

GFMS gold’s annual survey issued after the precious metal jumped on Friday to 1011.95 U.S. dollars per ounce – its highest level since touching a record U.S. $ 1032.70 in March 2008. Prices are interested again in 1000 under the limit of U.S. dollar because many traders taking advantage of the strong rise last week.

Thrust into the largely driven by the weakening in U.S. currency makes commodities priced in dollars cheaper for holders of stronger currencies, thus boosting demand. “On balance, we still took off benefits to prices in the medium term,” said GFMS chairman Philip Klapwijk in the group’s annual survey on Monday.

That’s mainly because we see it as likely that monetization of debt and interest rates of ultra-low, especially in the United States, will in some areas so that building inflationary pressures. “Throw in a weakening U.S. dollar and disappointment over conventional assets as green shoots arguments (economic recovery) withered and then gold is also well above 1000 dollars to be possible,” added Klapwijk.

Gold usually get support from worries about higher inflation because the metal is widely regarded by investors as a place of safe storage of values.

However, GFMS warned on Monday that the current rise may not be sustainable if the stimulus package failed to increase global demand in the world economy battered and inflation fell. “It is far from a guarantee that the ‘bull’ (passion) runs in the price of gold will continue,” consultant based in London warned.

“GFMS believes that the basis for the trend is still probably his turn, would happen if the various programs of monetary and fiscal stimulus failed to rejuvenate the world economy, feeding through to the state ‘disinflationary’.”

“It is estimated to have an impact on gold, which in turn may be exacerbated by investors who seek security outside of the U.S. state securities, which will increase the value of U.S. dollar,” said Klapwijk.