Gold to hit $1800/oz by end of 2012: GFMS Gold Survey

NEW YORK (Commodity Online): Gold’s bull run will continue and prices may reach $1,800 an ounce by the end of this year on improved investment sentiment for the gold market in the second half of 2012, as per latest Thomson Reuters GFMS Gold Survey report released in Beijing on Tuesday.

However, a new high for gold prices, the kind seen in September, may be pushed to the first quarter of 2013.

According to Philip Klapwijk, Global Head of Metals Analytics at Thomson Reuters GFMS, “ The upside would be capped by expectations of a surplus gold market in 2012. The Eurozone debt crisis is likely to continue in 2012 too, with Spain emerging as the principle area of concern. All the factors that triggered high gold prices in 2011 are still present in 2012 .”

Investors’ sentiment for gold is currently low due to the global slowdown and high international price levels. Demand for jewelery has also declined as consumers are cost-wary.

However, the faltering US economy, denoted by a slew of weak economic data, may soon trigger a stimulus package to contain the slowdown. The move is also expected to be replicated by emerging economies like China, India and Brazil.

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