LONDON, March 20 (Reuters) - Barclays Capital (BARC.L) lifted its gold price forecast for 2009 to $940 an ounce from $920, citing the prospect of a weaker dollar and fears about inflation, it said on Friday.
"Plans for further quantitative easing by the United States has seen the dollar nosedive," the bank said in a note. "In that environment, gold will shine, and we have revised our price forecast higher."
Gold has risen sharply since the Federal Reserve announced it would buy $300 billion in longer-dated Treasures on Wednesday, as fears over dollar weakness and rising inflation boosted prices. [GOL/] [ID:nN18343369]
The bank said it expects prices to rise to $905 an ounce in the second quarter from $872 in the first, to $950 in the third quarter and to $980 in the last three months of the year.
Spot gold <XAU=> was quoted at $953.15/954.65 an ounce at 1106 GMT, slightly below its level of $958.60 late in New York on Thursday but up nearly 3 percent week-on-week.
The bank also raised its silver price forecast for the full year to $13.20 an ounce from $11.80, and raised its platinum price view to $1,090 an ounce from $1,020. It raised its palladium forecast to $213 an ounce from $210.
