Gold Price Scenario and Forecasts for 2011

Gold price is rising at a striking rate since the beginning of this year. The initial months of 2011 saw a significant rise of gold price-35%. It reached about $500 in the beginning of the year. The price rise of other precious metals is no where compared to gold.  Yesterday the price of gold was recorded to be $1,900/oz. Two weeks ago the price was at 1,800/oz. Such a price hike within a span of two weeks is noteworthy. Market analysts have speculated that gold price will soon cross $2000/oz.

Industrialists say that the current market scenario is capable of pushing up the price of gold further. It can also act in the opposite direction according to experts. The debt crisis of the European market and increasing political upheavals of the Middle Eastern countries have made investors worried. Many a time, planned gold investments are also capable of bringing about a price hike of gold suddenly. Andrey Kryuchenkov, the VTV Capital analyst says that, considering the alarming macroeconomic downturn taking place around the world, a cessation of haven inflows into paper and physical gold is less likely to happen. Andrey goes on to say, that the risks of a deep pullback can no way be denied. Such dangers are ever present. Other market speculators clearly agree to this point.

The spot gold forecast was hiked by J.P Morgan significantly this month. It was raised by the company by about 39% on August 8. It has been predicted that gold price will reach 2,500/oz, before the year ends. Bank analysts reveal the fact that although gold prices have full potential of crossing $2,000/oz by the end of this year, it is becoming increasingly difficult to predict gold prices, given the highly volatile market conditions.

UBS, the Swiss Investment bank revised its gold price speculations recently. A month’s gold forecasts have been raised by the bank by about 13%. It speculated gold price to be 1950/oz on Tuesday. The bank further revealed that gold prices will reach the level of $2000/oz by the end of 2011.

Sharps Pixley’s main executive officer, Ross Norman, in a recent discussion with clients said that it’s better not to be greedy at this point of time.  He said that it was profitable to hold long gold previously. But it is not so now. The company is set to prepare levels at which gold positions can be sold. The process will continue until a stable level is achieved.