Goldman Sachs and Morgan Stanley loves gold for 2012, UBS predicts over 50% gains

Both Goldman Sachs and Morgan Stanley have confirmed that Gold is one of their top picks for 2012 while UBS has put a target that represents over 50% in gains from current levels.

Gold recorded its its 11th consecutive year of gains in 2011 and most investors are expecting another year of profits.

Jeffrey Currie, Head of commodities research at Goldman Sachs expects gold to hit $1940/oz in 12 months. “Our view on gold is driven by our view on underlying real interest rates. It is the sharp drop in price that makes it more attractive”, Bloomberg quoted Currie at an interview.

Morgan Stanley also reiterated its love for Gold and said gold may average a record $2200/oz in 2012.

Meanwhile Ed Tully, Chief Strategist at UBS predicts that gold will hit a high of $2500 this year. Considering that gold is trading around $1620-$1630 at present, the target if achieved will represent a more than 50% in gains from the current levels. Tully expects prices to average $2050/oz in 2012 – CommodityOnline

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Posted by admin on Jan 11 2012. 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