Now for some Top Financial Firms Gold Price Predictions for 2011:
The 2011 gold price comments below have been condensed and edited.
Thomas Winmill, president of Midas Funds
“Gold prices could average $1,500 per ounce next year and $1,600 by year-end in 2011.”
Goldman Sachs
"With the current round of [quantitative easing] set to end in June, and our U.S. economics team now forecasting strong growth in 2011 and 2012, we expect U.S. real interest rates to begin to rise in 2011, likely causing gold prices to peak near $1,750/oz in 2012," it said in a recent report.”
Peter Thomas, director of business development at PFG Precious Metals
“Don't rule out the chance of a price pull back in early January simply on profit-taking once traders are back at their desks. There's been absolutely no resistance," because of the light trading volumes common around this time.”
BNP Paribas precious-metals analyst Anne-Laure Tremblay
"Gold's perceived property as an inflation hedge is making the metal an attractive investment in the country, particularly as the other popular inflation hedge, property investment, has already achieved stellar price increases in the past two years," says who recently raised her 2011 forecast to an average of $1,500 an ounce, from $1,245.”
BMO Capital Markets
“The greatest threats to gold in the year ahead would be a premature increase in interest rates by the Fed, rapidly reduced inflation fears and a selloff of exchange-traded-fund holdings in favor of speculative short positions.”
U.S. investment bank Goldman Sachs Group Inc.
“ Expects gold prices to climb to $1,690 an ounce, and potentially even higher, over the next 12 months as a new round of quantitative easing keeps real interest rates low and drives excess capital flows from countries with trade surpluses—which have traditionally parked their money in U.S. government bonds—into other investable assets, such as gold.”
Sheryl King, head of Canadian economics at Merrill Lynch
“In this world of risk aversion and concerns about the U.S. currency, gold is where you want to be, regardless of whether you think the global economy will go back into recession, with a wave of defaults, or massive inflation. As long as we have these expectations of where the global economy's going to go, there's a lot of upside for gold.
“Our analyst is thinking we'll get a spike to up to as much as $100 a barrel [for oil] at some point in 2011. Base metals will benefit from the fact that global growth remains strong, and emerging Asia is particularly strong. We see commodities up about 8 per cent this year. “
