Commerzbank is predicting gold about $1,900 an ounce in early 2013 at the latest. The main reason for this is the probability of more stimulus from the Fed after a disappointing jobs report. Experts also believe silver has room to grow and predict the metal will hit $35 an ounce before the year is over.
September 10, 2012, 4:28 PM
Anticipation of more stimulus measures around the globe has pushed Commerzbank to call for gold above $1,900 an ounce in early 2013 at the latest.
Gold GCZ2 -0.70% settled at a record high in early September 2011, at $ 1,873.70 an ounce, but has seen its share of anemic moves earlier this year. Weak gold demand in India and a stronger U.S. dollar are the potential pitfalls for the rosier picture, the Commerzbank analysts said.
Gold settled at $1,731.80 an ounce on Monday
Silver SIZ2 -0.89% also has more room to grow, with the analysts forecasting silver at $35 per ounce by year’s end. Silver ended Monday at $33.63 an ounce.
Platinum PLV2 -0.20% will also forge ahead on the back of supply fears, the analysts said. “What is more, platinum should be pulled upwards by the increase we expect to see in the price of gold. By year’s end we would put the platinum price at $1,750 per troy ounce,” they said.
The tide lifting platinum would also lift sister metal’s palladium PAZ2 +1.83% , with the metal at $750 an ounce at the end of the year. “Palladium is likely to profit from the automotive industry to a greater extent than platinum,” Commerzbank said. Platinum and palladium on Monday ended at $1,603.80 and $672.75 an ounce, respectively.
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