JP Morgan expects gold to trade $720/oz in H1 2008

NEW YORK, Sept 10 (Reuters) - J.P. Morgan Securities said on Monday it expects gold to rise to $720 an ounce in the first half of 2008 because of a robust physical market, stressed mine output and reduced scrap supply.

"We believe that we are seeing the reemergence of gold as a safe-haven asset, which if true implies that the recent correlation between equities and spot gold will break down," J.P. Morgan said in a research note.

The New York brokerage also forecast both gold and platinum to respectively outperform silver and palladium .

J.P. Morgan said the six-month price target for gold is $715 an ounce, and $1,315 for platinum.

Spot gold broke above the psychological $700 level on Friday. It traded around $704 an ounce on Monday. Meanwhile, platinum was quoted at around $1,290 an ounce on Monday.