Banks 2012 Target Price on Gold
Many Banks are still very bullish on gold this year. Here is a list of some of the targeted projections for the year.
Morgan Stanley: $2,200 per ounce
Morgan Stanley lists gold among its “favorite longs” in the commodity complex for 2012 and forecast prices of $2,200 an ounce. “We believe the defensive nature of gold, and silver to a lesser degree, will create significant investment demand as investors look for safe havens in a period of risk aversion,” MS says.
USB: $2050 per ounce
UBS says its core view on gold remains bullish, with an average 2012 price of $2,050 forecast. “Most of the factors that pushed gold higher in 2011 are not going away.”
BNP Paribas: $1750 per ounce
BNP is not as bullish as the other banks stating “with high uncertainty likely to remain a major feature of the markets, gold could be vulnerable to further episodes of price correction. This could be the case particularly in the first half of 2012,” they bank says.
SEB Merchant Bank: $2050 per ounce
New central bank liquidity injections could drive gold prices to record highs, perhaps as soon as the first half of 2012, they say. “The question whether the European Central Bank will print money or not has a considerable bearing on possible gold market developments going forward,” they say.
TD Securities: $1855.00
“The volatility in gold will remain, with another chance of moving back to $1,500 or below a possibility. “The downside moves heading into 2012 have been very sharp owing to a significant reduction in open interest and less liquidity, as both commercial and noncommercial longs and shorts have greatly reduced holdings. If we continue to see robust moves away from risk assets, along with a spike in systemic uncertainty, gold could still move sharply lower. Based on our analysis, it would not be surprising to see gold drop through the $1,500/oz level at some point in the next three months”.
Barclays Capital: High $2200, Low $1400, average, $1875.00 per ounce
Barclays list three main factors in the influence in gold. “First, central-bank buying continues and with new interest emerging,” they said. “Second, uncertainty continues to surround the financial markets and sovereign debt; and finally, growth in investment demand is occurring despite price corrections.”
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