Gold Will Hit $2,000 This Year, Survey Says

The price of gold is likely to surge beyond $2,000 this year, according to the Gold Survey 2012 released by Thomas Reuters GFMS, a leading consultancy in precious metals.

“[We] are bullish in the medium term,”  said Philip Klapwijk, the company’s global head of metal analytics, in a statement. “A push on towards $2,000 is definitely on the cards before the year is out, although a clear breach of that mark is arguably a more likely event for the first half of next year.”

He added that any current softening in the price of gold will likely be off-set by fears about the world economy, particularly over Eurozone sovereign debt, with Spain a new area of concern. In addition, several economies, including the U.S., might try more monetary easing, leading to greater concerns about inflation.

The statement also noted that high demand from Central Banks contributed to gold’s sharp gains in 2011.

In a video posted on the GFMS site from last year, Klapwijk said that further world economic woes could push gold even beyond $2,000.

“A lot depends on monetary policy in the major economies, a lot depends on whether we see further hits to confidence,” he said. “If we do see that, and if we also see inflation starting to worry people not just in China and India but in the major economies, then we could well see a situation where gold goes viral, if you like, and we see significantly greater upside.”

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