Forecasts of analysts on gold prices in 2011-2012

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

Gold prices this week showed a record decline, amounting to less than $1,800 per troy ounce. Over the past two trading days, the cost of this precious metal as a whole dropped by $160 per troy ounce (8.4 percent), the highest drop since 1980. As a result of trading on Wednesday, Aug. 25, the gold price was $1750.55 per troy ounce.
The drop, however, was preceded by a prolonged increase in the value of gold, which is considered the most reliable asset on the backdrop of the debt problems of the eurozone and the U.S. A significant role in price increases was played by decision Standard & Poor's to decrease the credit rating of the United States.

Earlier this week, the price of gold set a new historic record, exceeding $1,900 per troy ounce.

Western analysts believe that the gold will continue to show growth tendency, and new records for the cost is still ahead.

According to analysts of one of Britain's independent macroeconomic research consultancy Capital Economics, in 2012 the gold price will reach $2,000 per troy ounce, and in 2013 - $2,500 per troy ounce.

The analysts forecast the average gold price at $1,800 per troy ounce as a result of 2011.

Analysts of one of the globally largest U.S. bank JP Morgan believe that the gold price of $2,500 per troy ounce could be recorded by the end of 2011. The bank had previously predicted that the price of gold for a specified period will total $1,800 per troy ounce.

Analysts of the U.S. Goldman Sachs Bank also raised their forecast for the price of gold from $1,730 to $1,880 over the coming year. Analysts expect the price of gold at $1,645 per troy ounce in the fourth quarter of 2011 and $1,730 per troy ounce in the first quarter of 2012.

According to analysts of Deutsche Bank, the gold price in 2012 will amount to $ 2,000 per troy ounce. Analysts say the main factor in rising prices will be lower interest rates in the U.S.

Analysts at the U.S. investment bank Morgan Stanley raised their forecast for the gold price in 2011 by 8 percent to $1,511 per troy ounce.
Analysts of Swiss UBS Bank believe that the gold will be traded in the range of $1,725-2,100 per troy ounce in the next three months.

BNP Paribas analysts forecast the average price of gold at $1,635 per troy ounce in 2011 compared to $1,510 predicted by them earlier. The analysts expect prices to reach $ 2,200 per troy ounce in 2013.

Forecasts of analysts on gold prices in 2011 and 2012 (in $/troy ounce)