Next year will see gold futures skyrocket, eclipse the record price of $1,923.70 per troy ounce by the end of June and climb as high as $2,200 per troy ounce, an administrator with Morgan Stanley in Australia told Bloomberg during an interview.
The driver of the rapid ascent of commodities that gold will lead? None other than the sovereign debt crisis eating up euro zone banks and public finance systems, according to chief metals economist Peter Richardson. Financial markets will feel the pinch next year and demand for gold will intensify, he said.
"A significant withdrawal of credit, write-downs on balance sheets, these are not good developments for financial markets generally and it's very hard to see how this can end well," the metals specialist said, also pointing to copper as another metal that will perform strongly in 2012.
Gold futures are less than 45 days from achieving an 11th-straight year of annual gains as the yellowish metal is up about 24 percent since the beginning of the year.
Lucas Papademos of Greece and Mario Monti of Italy, newly empowered prime ministers replacing predecessors who fell largely due to an inability to control the debt scourge, are charged with preventing defaults on debt obligations, according to the Los Angeles Times.
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