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.
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