Gold Bear Market Expected to End by December 2012
Gold has been particularly sensitive to central banks’ monetary policies. In February, it was up 15% for the year after the Fed said it would keep interest rates near zero until late 2014.
Deutsche Bank AG (DB) has trimmed its 2012 Gold Forecast slightly but said it expects the market to set a new record high next year and rally above $2,000 a troy ounce as the potential for policy action later in the year increases significantly.
Deutsche sees gold averaging $1,726/oz in 2012, $2,050/oz in 2013.
As investors return, silver’s downside influences will slim to just industrial demand, Deutsche said, with the market set to average $38/oz in the fourth quarter, above its 2012 peak of $37.49/oz.