Forecasts on price on gold for 2011-2012

Azerbaijan, Baku, Dec. 25 / Trend A.Badalova /

Debt crisis erupted in Europe in early 2010, as well as the weakening of the U.S. dollar, positively impacted the prices on gold. Since 2010, the price on gold rose by 26 percent.

As a result of trading on the COMEX (Division of the New York Mercantile Exchange) on Wednesday, Dec.22, the cost of the February gold futures hit $1.380.5 per ounce.

Western analysts predict the price on gold to continue to grow in the short term.

Analysts at one of the leading British consulting firms for Economic Research Capital Economics increased the forecasts on the price on gold up to $1,600 per troy ounce by late 2011 and $ 2,000 per troy ounce by late 2012. The main reason for the changes in forecasts was the improvement in the short-term prospects for the global economy.

The British bank Barclays' analysts predict the price on gold to reach $1,490 per troy ounce in the third quarter of 2011. However, analysts do not exclude the probability of subsequent fall in the price on gold in connection with the possibility of setting high interest rates as the continuation of global economic recovery.

Barclays' analysts predict the average price on gold at $1,445 per troy ounce in 2011.

Analysts of one of the largest U.S. investment banks Morgan Stanley expect the average price on gold to be $1,315 per troy ounce in 2011 compared to $1,203 per troy ounce in 2010.

The Swiss bank UBS expects the average price on gold in 2011 at $1,550 per troy ounce. In the first quarter of next year, analysts predict the price at 1,450 per troy ounce.

Analysts at the U.S. bank Goldman Sachs raised the forecast on the price on gold from $1,325 per troy ounce to $1,575 in 2011 and from $1,200 to $1,575 per troy ounce in 2012.

Western analysts' forecasts on the price on gold for 2011-2012 (in $ / troy ounce):