Banks Predict Huge Gains for Gold

The gold price has not shown much movement for most of the year, but now some prominent forecasters say jewelers may be in for yet another roller-coaster ride.

Citing central banks’ policy of monetary “easing,” a growing number of analysts now see gold eventually soaring to $2,000 an ounce—or higher.

On Sept. 18, Deutsche Bank analysts predicted that gold prices will pass $2,000 per ounce in the first half of 2013, according to a report in The Wall Street Journal.

The bank added a further target of $2,400 an ounce for the end of 2014.

Another analyst, Citi’s Tom Fitzpatrick, goes even further, predicting that gold will hit $2,400 or $2,500 by the end of the first quarter of 2013, according to Business Insider.

“We believe [gold’s] move is far from over and still expect gold to be an outperforming asset for some years to come,” Fitzpatrick said.

And even these forecasters look like gold bugs compared to MacNeil Curry, head of foreign-exchange and rates technical strategy at Bank of America Merrill Lynch, who told CNBC Sept. 21 that he foresees gold hitting $3,000 to $5,000 an ounce, although “not in the next few months.”

“On a long-term basis we are on a well-defined up-trend, and we have got more to run before that runs its course,” Curry said.

At press time, the price of gold was trading at $1,771 an ounce.