Gold rally expected as central banks cut sales

Gold may rally in coming months as central banks reduce sales of bullion reserves, New York commodity researcher CPM Group said in its annual outlook report released Tuesday 28 February.

Gold for immediate delivery will average US$502 an ounce in 2006, peaking at US$560 in the current quarter, CPM managing director Jeff Christian was quoted as saying in a report by Canada's Financial Post.

Prices averaged US$445 in 2005 and US$553 this quarter after reaching a 25-year high of US$575.35 on 2

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