 |
Trade forex with eToro and get up to $1,000 forex bonus!
Open a forex account today with a minimum deposit of just $50 |
All available resources say that next year we might see gold prices rise above the current price of $1725 per ounce. The average price next year is expected to be between $1950 and $2000 per ounce. It is likely that the market could even exceed the $2000 mark for a brief period. Estimates indicate that this will be possible in the first quarter of the year if no agreement has been reached on the U.S. fiscal cliff between the Republicans and Democrats.
If a failure to reach such an agreement does occur, there is no doubt at all that the credit agencies will start to reduce the credit rating of the United States and this would quickly increase the interest in gold. In 2011 we saw a rise in the price of gold to $400 just in two months and this has happened before in other similar situations. However, if an agreement on the U.S. fiscal cliff is reached, the price of gold may still increase but much more slowly.
The main reason for optimism about gold prices is the monetary policy approved by the major central banks and the latest one was Bank of Japan who chose the path of quantitative easing just like many other of the world’s major central banks. In addition, the European crisis remains unresolved and this is also a catalyst for rising gold prices. Also, the strained situation in the Middle East and on the Iranian front in regards to its nuclear activities is going to be yet another trigger for rising gold prices.
No comments:
Post a Comment