Gold price continues its run toward $2,000 an ounce next year

Gold fell short in its run toward $2,000 an ounce this year, but one year’s failure may lead to next year’s success — or at least another good shot at it.

Gold futures prices reached a record close near $1,900 an ounce in August and year to date, they’ve gained 13%. Still, many analysts had predicted since the start of 2011 that this would be the year prices for the precious metal reached $2,000.

But with global stock markets selling off throughout much of the year and investors often favoring the U.S. dollar as their safe haven of choice, gold failed to find support as investors sold their gold to generate needed cash.

“Gold has had to face its own headwinds, not caused by poor fundamentals, but by ‘investor meltdown’ as investors from European banks to cash-strapped individuals have needed to liquidate gold to cover shortfalls in other areas,” said Julian Phillips, an editor at GoldForecaster.com.

Futures prices closed at $1,610.60 on Thursday, down about 15% from the year’s peak close, with a much longer way to go to reach that key $2,000 level.

“A complete catastrophic European meltdown is now unexpected, but if we do see that or some other major cataclysmic event with global reach, gold will pierce the psychologically significant $2,000 threshold in 2012,” said Seth Rabinowitz, who covers commodities as a partner at Silicon Associates. “Barring that, $2,000 will not happen until 2013.”

Even so, most analysts expect to see higher prices and fresh all-time highs for gold in the coming year and some expect them to reach the threshold that has so far been elusive.

“Consumers and investors were cashing in some profits,” said John Person, president of NationalFutures.com, as economic uncertainties started to fade with stronger economic data and Europe and China started taking their foot off the tightening brakes, shorting up dollar strength and in turn, putting short-term pressure on gold.

“This is very healthy for further gains in 2012, especially if we hold above $1,500,” he said. “We could see the market trade in a range through mid summer.”

Then as the U.S. election debates heat up, he expects gold to move to $2,200-$2,400 by late October. That’s where gold prices will likely peak for 2012, Person said, noting that prices may trade there, but not stay there.

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Tags: Gold analysis, gold forecast, Gold future prices, Gold futures, Gold investment, Gold news, Gold price, gold price 2012, gold price forecast, Gold prices, price of gold, Spot gold, Spot gold price

Posted by admin on Dec 23 2011. Filed under Gold predictions. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry