Gold Price Per Ounce
August 8, 2011 by staff
Gold hit a new nominal record of 1716.19 and a troy ounce on Monday following the downgrade of credit of U.S. Standard & Poor for the weekend.
But strategists were already looking to the next stage. JPMorgan encapsulates the bullish sentiment in the market for gold bullion predict could reach 2500 and the end of the year.
That would exceed the inflation adjusted gold is high, he played in 1980, which translates to just under 2,500 and in today’s money.
“Before the cuts, our view was that gold could average cash and 1.800 ounces last year,” said Colin Fenton, director of JPMorgan’s research materials, in a note to clients. “This view is now likely to turn out to be too conservative, spot gold and could lead to 2,500 per ounce or more, although at a very high volatility.”
Goldman Sachs revised its gold price forecasts to predict that the metal and trade in 1860 within 12 months, is expected to fall back to 1645 and over the next three months.
Investors have already begun to bet on a sharp rise in gold prices in the coming months with operators reporting a strong interest in call options – which give investors the right but not the obligation to buy a futures contract a designated price – in 1800 and by October 2000 and December.
Some gold bulls are beginning to make comparisons with the 1970 when a similar confluence of bullish factors drove the price of gold and 850 an ounce, a record, adjusted for inflation, still stands.
“The level of anxiety and lack of trust in institutions, private or governmental, is similar to previous periods of high risk – and that is when the gold shines,” said James Steel, precious metals strategist at HSBC in New York.
Growing fears of sovereign debt default and expectations of further monetary easing has fueled gold prices.
Meanwhile, investors have been deterred from putting funds to favorite refuge, the Swiss franc and Japanese yen, after the recent moves by the banks of the two countries central to curb the appreciation of their currencies.
Goldman Sachs said the price of gold had been unable to keep pace with the “collapse” of U.S. interest rates adjusted for inflation.
That suggests that the Bank’s strategic commodity, he said, “the positioning of gold is” insufficient bought ‘. ”
The bank, which has the largest division of commodities among investment banks with income, revised its previous expectation that gold prices would peak next year.
“U.S. economic growth has been slower and lower real interest rates, which had anticipated,” said Goldman. “We now expect U.S. rates to real interest rates will remain low for longer.”
Safe-haven buying, rising 2.9 percent to 39.47 and ounce, also helped silver but platinum and palladium remained under pressure.
In fact, the price of gold rose above the price of platinum for the first time since a brief stint in late 2008. Before that, the last time the yellow metal traded above platinum in 1996.
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