EDINBURGH  - Gold prices  were expected to be $1 181,30 an ounce in 12 months' time, according to a poll of delegates at the London Bullion Market Association annual conference.

When asked by the conference organisers where they expected to see prices at the time of the LBMA's next conference in 12 months time, the delegates were mainly bullish on precious metals.

Silver prices were expected to be at $18,10 an ounce in 12 months' time, they said, while platinum was expected to be at $1 629,10 and palladium at $475,80 an ounce.

Some 368 traders, analysts, miners, central bankers and others attended the conference in Scotland, which ends on Tuesday.

Their positive outlook for gold also reflected broad expectations for a rise in inflation and persistent weakness in the dollar over the next 12 months.

Around two-thirds of delegates expect the U.S. dollar to be weaker in 12 months' time, with only 37 percent expecting it to be stronger.

G7 inflation was expected to be higher, according to 67 percent of participants, with 33 percent expecting it to be lower.

John Reade, public affairs committee member for the LBMA, said in his closing address that both factors would be expected to support gold.

"Most people concerned about the weaker dollar have probably worked out that gold is the place to be," he told delegates. "If inflation fears do increase dramatically, gold will trade much higher."

Just over a third of delegates expected economic growth to be stronger in 12 months' time, with a further 54 percent expecting it to be about the same.

A return to economic growth would be expected to support the more industrial precious metals -- silver, platinum, and palladium -- which saw a dip in demand as the economy faltered.

CONDITIONS GOOD

James Steel, precious metals analyst at HSBC, said on the sidelines of the conference that conditions looked good for gold over the next 12 months.

"Our outlook for the dollar is for dollar/euro to go to $1,50 again, which would imply the gold market will remain well bid," he said.

"Although we're not in the inflation camp, we do believe that quantitative easing will have a sufficiently stimulative effect to boost commodity prices globally and weaken the dollar, which would further reinforce gold prices," he added.

Gold prices have benefited from a period of weakness in the U.S. dollar since the end of the seasonally quiet summer months, rising to a peak of $1 070 40 an ounce in October.

Like all dollar-priced commodities, gold becomes cheaper for holders of other currencies as the U.S. unit weakens, and is also seen as an alternative asset to the dollar.

Philip Klapwijk, chairman of metal consultancy GFMS, said the LBMA forecast was certainly possible, especially given the recent strength of gold prices, but added that the picture was not all rosy for the metal.

"(The forecast) presupposes that we are going to see significant dollar weakness, and that inflation concerns will grow significantly," he told Reuters.

"If the market were to go to those levels, it would face major obstacles along the way in terms of other elements of supply and demand -- particularly in terms of scrap, and jewellery demand."

Record levels of scrap gold returning to the market in the first quarter were a major factor pulling prices down from above $1 000 an ounce in February.