Gold in 2012 to Average $2,050/oz and Will Reach $2,500/oz – UBS

Gold’s London AM fix this morning was USD 1,627.00, GBP 1,051.91, and EUR 1,271.49 per ounce.

Yesterday’s AM fix was USD 1,618.00, GBP 1,047.38, and EUR 1,266.54 per ounce.


Cross Currency Table

Gold has risen for the first time in three days. Asian stocks and the euro also gained today before German Chancellor Angela Merkel meets with the International Monetary Fund’s, Christine Lagarde in Berlin, a day after Merkel and French President Nicolas Sarkozy met to try minimize the Greek and Eurozone debt debacle.

Across the pond the USA’s debt continues to rise above the 100% mark.  That means the good and services of the US economy ($15.17 trillion) is equal to the entire debt of the country.  Analysts project the economy would have to grow at least 6% a year to just stay afloat. Among advanced economies, only Greece, Iceland, Ireland, Italy, Japan and Portugal have debts larger than their economies. Greece, Ireland, Portugal and Italy are at the root of the European debt crisis. The first three needed bailouts from European central banks and Italy’s finances are now monitored by the International Monetary Fund.


Gold Spot $/oz – 5 days

Today the Troika (officials from the IMF, ECB & European Commision) return to Ireland for its quarterly review. Over the next ten days they will determine if Ireland is implementing its bailout programme properly but there are already calls for a second ‘bailout’. Eurozone bond auctions will show whether investors are willing to put more money into the debt ridden European nations of Spain and Italy on Thursday and Friday respectively.

Demand for gold bullion continues to be robust in the EU due to concerns about the euro. In Asia, demand has not risen significantly yet but is expected to in the coming days in the run up to Chinese New Year.


Gold Spot $/oz – 1 year

Goldman Sachs Group Inc. and Morgan Stanley yesterday reiterated their pick of gold as a favored commodity this year, as investors seek to protect their portfolios against the unrest in financial markets. Edel Tully, analyst from UBS predicts gold will reach $2,500/oz in 2012 and will average $2,050/oz – 26% above the current price. 

Turmoil within financial markets continues to pave the way for gold to shine in 2012. Gold remains key for diversification in portfolio management.

For breaking news and commentary on financial markets and gold, follow us on Twitter.

NEWS
(Reuters)
Gold firms; euro zone concerns remain

(BusinessWeek)
Gold Advances for First Day in Three on Europe Crisis Optimism

(Bloomberg)
Gold Could Hit $1,940 an Ounce in ’12: Goldman

(Der Spiegel)
Fearful Investors Stash Money in Luxury Goods

(Reuters)
India allows more banks to import gold, silver

(USA Today)
U.S. debt is now equal to economy

COMMENTARY
(Infographic)
Infographic: $8.5 Trillion Bullion vs. $750 Trillion Derivatives

(KingWorldNews)
James Turk – There is a War Going on in the Gold Market

(Wall Street Journal)
Gold Tipped to Keep on Shining

(Minyanville)
Precious Metals Sector Sees Major Bottom

(Foreign Policy Journal)
The Dismal Economic Outlook For The New Year

(MarketWatch)
Investors should root for the gold bugs

 

 

Mark O'Byrne

Also on news-goldcore-com

Videos

Tavi Costa- The Fed is Trapped

Silver Market Predictions – Ed Steer Talks about the Silver & Gold Price

Are We In A Financial Bubble? Peter Grandich Interview

Blog posts

Lawrence Lepard – Living in a World with Inflation

Lawrence Lepard Portfolio Manager and advocate of sound money, is our guest on this episode of GoldCore TV. With 40% of money in the US being created in the last 2 years, we ask Lawrence if the Fed is trapped. If so will this mean that it is going to be very difficult for them […]

READ MORE

Supply Chain Crisis Effects on Gold & Silver

The broken chain – could the supply crunch be worse than the oil crunch of the 1970s Anyone that has bought a new or used car in the last year has faced higher prices and long wait times for delivery. This is all because of the very small but essential semiconductor, which is in short […]

READ MORE

This is a Long Term Bullish Pattern for Gold – Gareth Soloway on GoldCore TV

“This is a long term bullish pattern for gold!” – Gareth Soloway Gold In this latest episode of GoldCore TV, Gareth Soloway joins Dave Russell to discuss what what the charts are suggesting for the stock markets, bond markets and #bitcoin. In addition to this he also takes a look at his gold price forecast 2021 and beyond.Gareth identifies the key levels that […]

READ MORE

Featured

Gold, the Tried-and-True Inflation Hedge for What’s Coming!

READ MORE

How High is Too High for Rising Government Bond Yields?

READ MORE

Silver – 7 Reasons it is Still Set to Soar

READ MORE
Newsletter
Category
Archives
Popular

No posts available

Videos

Tavi Costa- The Fed is Trapped

Silver Market Predictions – Ed Steer Talks about the Silver & Gold Price

Are We In A Financial Bubble? Peter Grandich Interview

Blog posts

Lawrence Lepard – Living in a World with Inflation

Lawrence Lepard Portfolio Manager and advocate of sound money, is our guest on this episode of GoldCore TV. With 40% of money in the US being created in the last 2 years, we ask Lawrence if the Fed is trapped. If so will this mean that it is going to be very difficult for them […]

READ MORE

Supply Chain Crisis Effects on Gold & Silver

The broken chain – could the supply crunch be worse than the oil crunch of the 1970s Anyone that has bought a new or used car in the last year has faced higher prices and long wait times for delivery. This is all because of the very small but essential semiconductor, which is in short […]

READ MORE

This is a Long Term Bullish Pattern for Gold – Gareth Soloway on GoldCore TV

“This is a long term bullish pattern for gold!” – Gareth Soloway Gold In this latest episode of GoldCore TV, Gareth Soloway joins Dave Russell to discuss what what the charts are suggesting for the stock markets, bond markets and #bitcoin. In addition to this he also takes a look at his gold price forecast 2021 and beyond.Gareth identifies the key levels that […]

READ MORE

Featured

Gold, the Tried-and-True Inflation Hedge for What’s Coming!

READ MORE

How High is Too High for Rising Government Bond Yields?

READ MORE

Silver – 7 Reasons it is Still Set to Soar

READ MORE