Tags: BofA | Strategist | Gold

BofA Strategist Schels: Gold to Hit $2,500 in 2012

Monday, 19 Dec 2011 08:01 AM

Gold will rise by close to $900 next year, climbing from current levels of around $1,590 to $2,500 as the metal resumes its status as a safe haven asset class, says Sabine Schels, a commodities strategist at Bank of America Merrill Lynch.

Expect gold prices to average $1,850 in 2012, up from $1,573 in 2011.

"We see no let up in investor interest. Exchange traded funds’ levels continue to hold up," Schels says, according to CNBC.

The European debt crisis will continue to punish sovereign bonds, while low interest rates and loose monetary policies in the eurozone, the U.S. and Japan will keep paper currencies cheap and restore gold's safe haven status.
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Gold often rises when currencies weaken, which has been the case for a good chunk of 2011 although the dollar has acted as a safe haven recently amid concerns the European debt crisis is getting worse.

gold200APuseme.jpg
(Associated Press photo)
Others are less bullish on the precious metal, at least in the near term.

A Reuters poll of hedge fund managers, economists and traders shows that gold prices will dip below $1,500 an ounce in the next three months and won't break September highs until late in 2012 at the earliest.

"What is surprising is that in an environment where headline risk news is bigger than ever, gold has actually fallen from its highs," says Christoph Eibl, CEO and founding partner of the Swiss commodity hedge fund Tiberius, according to Reuters.

"We believe that, in 2012, of all metals gold will be the worst performing."

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Gold will rise by close to $900 next year, climbing from current levels of around $1,590 to $2,500 as the metal resumes its status as a safe haven asset class, says Sabine Schels, a commodities strategist at Bank of America Merrill Lynch. Expect gold prices to average...
BofA,Strategist,Gold
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2011-01-19
Monday, 19 Dec 2011 08:01 AM
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