Gold futures are likely to notch the psychological price of $2,000 per troy ounce next year and will drive as high as $2,300 per troy ounce, a Texas metals dealer said in a press release.
Terry Hanlon of Dillon Gage Metals in Dallas predicted gold futures, having endured a setback since touching record prices in early September, will recover next year and push higher because demand will continue rising. He also pointed to questions about economic situations in the U.S., Europe and elsewhere in the world as potential drivers of the precious metal.
"Gold's long-term prospects remain strong as demand continues to rise, while growth in world supplies should remain limited," the company president said. "Uncertainty about U.S., European and other economies will clearly keep investors interested in precious metals in 2012."
He pointed to this Friday's European Union summit, for which anticipations are running high regarding the formulation of a resolution to the euro zone's debt scourge.
Gold futures are hurtling toward achieving an 11th consecutive year of annual gains after having begun the year priced at around $1,400 per troy ounce. The yellowish metal was worth around $1,733 per troy ounce on Tuesday afternoon.
Risk Disclosure
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.
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 trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.
