Western analysts voice medium-term forecasts on gold prices

Azerbaijan, Baku, June 7 / Trend A.Badalova /

Last month was a success for gold prices. Quotes on the precious metal rose three percent in May due to active gold purchases by investors, which led to concerns of slowing economic growth in the Eurozone on the backdrop of debt problems. The prices on gold reached their highest level at $1,248.95 per troy ounce mid-last month.

Analysts' medium-term forecasts envisage a further increase in gold prices.

Merrill Lynch analysts forecast gold prices to reach $1,500 per troy ounce in the medium term, namely in late 2011. Analysts have reported that gold prices will jump thanks to a significant demand for the metal from China.

Deutsche Bank analysts expect gold prices to reach $1,450 per troy ounce in 2011 compared to the $1,250 per troy ounce forecast earlier. According to analysts, gold prices will reach $1,600 per troy ounce in 2012. Analysts also increased their short-term forecasts (in 2010) from $1,150 to $1,215 per troy ounce.

Economic Research Capital Economics analysts also raised their forecast on gold prices in 2010- 2011 on the backdrop of a strong demand. However, their forecasts remain moderate. Capital Economics analysts have reported that gold prices will reach $950 per troy ounce in late 2010 and 2011 compared to the $900 forecast earlier by the bank.

British analysts forecast prices at reaching $1,100 per troy ounce in the third quarter of 2010. However, analysts predict a price decline to $950 per troy ounce by late 2010 amid government default in first-world countries and a weakening U.S. currency.

UBS analysts have forecast the average price on gold at $ 1,300 per troy ounce late in the second quarter. In the third quarter, analysts predict a price drop to $ 1,200 per troy ounce.

Forecasts on Gold Prices in Medium Term ($ / troy ounce)

Do you have any feedback? Contact our journalist at: [email protected]