The remainder of this year and all of next year will see gold futures achieve higher prices than originally forecast by Credit Suisse bank, the international bank announced on Tuesday.
The bank raised its forecast partially because previous efforts with projections were not aggressive enough, Reuters reports. Next year, the yellowish metal will see advances of 19 percent to $1,850 per troy ounce. By the end of this year, bullion will climb 5 percent to $1,575 per troy ounce. Demand for gold next year will push its price to $2,200 per troy ounce thus it will easily achieve the benchmark price of $2,000 per troy ounce next year.
"Given that many of the factors that have underpinned the rapid increase – most importantly, fears of a global meltdown – remain in place, we expect gold prices to continue to recover over the balance of 2011," states a research note by analyst Tom Kendall.
Tuesday saw gold futures drop in value as a result of Ben Bernanke, chair of the U.S. Federal Reserve, brushing off the perils of inflation while reducing the likelihood of a follow-up round of quantitative easing to spur the slumping economy, according to Dow Jones Newswires.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.