The price of gold futures soon will kick off a bullish run and drive much higher than the psychological threshold of $2,000 per troy ounce by the end of this year, the chief global economist of Capital Economics told The Financial Post.
Though the price of the yellowish metal has been struggling and see-sawing as of late, Julian Jessop said bullion will soar to $2,200 per troy ounce by the end of 2012 because officials in the euro zone have not solved the sovereign debt scourge.
"The most likely catalyst for a further surge in the gold price would be the start of new and much more dangerous phase of the crisis in the euro-zone, ultimately leading to the break-up of the single currency itself," Jessop told the news source. "We continue to expect further defaults not only in Greece but also elsewhere in the region, with at least one country abandoning the euro completely over the next two years."
He said investors will demand the yellowish metal as a safe haven.
The Wall Street Journal reports the price of gold futures is likely to be impacted by India raising tariffs on imported gold to 4 percent.