$2,000 gold not a certainty this year
A $2,000 gold this year is not at all a ceratinty but a big probability, according to many observers after major banks and consultants cut down their bullish forecasts.
They see the average gold price at $1845 an ounce for 2012. However they added that majority of investors think the other way and believed gold will stretch its broad winning streak to a 12th year.
The precious yellow metal rose steeply last year as investors flew to safe havens from August in response to market tremors.
Gold futures that mature in three months peaked at a height of $1,899 per troy ounce in September before falling as low as $1,539.9 in December.
The yellow metal dropped mainly after investors redoubling their efforts to secure cash as global economic conditions worsened, analysts said.
However, since the beginning of 2012, gold prices have rebounded. Gold futures for February delivery rose 0.9 percent to settle at $1,678.30 an ounce on the New York exchange on Monday, as investors generally became more satisfied with the level of risk.
Gold will ceratinly hit the $2000 mark this year even if the European economy recovers as prices are bound to rise as inflationary pressure is likely to continue due to increasing liquidity in the long term, analysts pointed out.
They added that world's two largest consumers India and China would continue to drive gold demand.
China in particular looked at gold to assist in its fight against the dollar to boost its own currency, the yuan, added them.
Source: BullionStreet
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