Anticipation of economic stimulus plans to be implemented by nations including the U.S. and China are prompting strong support for the prospects of increasing prices for the precious metal, a poll of traders and analysts administered at a Southern India conference this past Saturday revealed.
The yellowish metal is projected to drive to $1,800 per troy ounce by the end of this year, which would push gains on the year to 15 percent, a median forecast of the Bloomberg survey indicated.
"The euro zone has been quiet of late, but that doesn't mean the problems have disappeared," precious metals global head Jeffrey Rhodes with INTL FCStone Inc. told the news source. "The U.S. economy has been sluggish and there is a growing belief that there is going to be QE3 soon. This anticipation is driving the market."
At 11:57 a.m. on Tuesday, gold futures slipped 0.10 percent, a $1.70 loss to $1,673.90 per troy ounce.
Losses to bullion were minimized by gains to the common currency of the European Union, according to The Wall Street Journal.