Swiss firm expects further price increases in 2010 and 2011

"Our fundamental view on gold hasn't changed in the last couple of weeks; we continue to be positive and expect further price increases in 2010 and 2011," says Daniel Zurbruegg, managing partner of Alpine Atlantic Global Asset Management of Switzerland.

"The recent pullback seems to be a confirmation of the positive fundamentals supporting the current multi-year uptrend in gold. We can't see any real negative factor for gold at the moment other than its impressive upward move in the last couple of years which brought the price per ounce to levels unimaginable only a few years ago. Smaller consolidation with prices moving down a couple of percentage points are always possible, and therefore the price can trend sideways for quite some time, but sooner or later, the various value drivers for gold will drive prices further. ...

"In our view, this is a reflection of the growing uncertainty among investors with regards to the future monetary steps of central banks which will likely print more money and eventually devalue their currencies. The trust of people in governments and central banks is diminishing in many parts of the world, therefore increasing the demand for precious metals."

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