Gold to Rise “Well Above $2,000/oz in the Coming Months”

TD Securities was the latest firm to raise its gold price forecasts, and now expects the yellow metal to climb “well above” $2,000 per ounce in the coming months.

In its report, the firm addressed the recent weakness in gold by stating that “Despite the very gold-favourable macroeconomic environment, concerns surrounding the European sovereign debt crisis and a generally bullish sentiment, the yellow metal has dropped sharply from its September 7th high of nearly $1,924/oz to trade sideways near the $1,850/oz territory recently.”

TD nonetheless remained quite positive on gold, noting that “We are bullish on the yellow metal. In fact we have upgraded our short and medium term forecast, with prices expected to hit highs of well above $2,000/oz in the coming months on lower bond yields, expectations of poor risky asset returns and volatility, growing European sovereign debt concerns and general risk aversion owing to uncertain global economic conditions. TDS now projects the yellow metal will average $1,975/oz in 2012 and $1,750/oz in 2013. This compares to our previous forecast of $1,850/oz in 2012 and $1,650/oz in 2013.”

Source; http://www.goldalert.com