The price of gold will reach a new record next year, over $2,000 per ounce, whereas central banks will accelerate the money printing programs to support national economies, according to the head of metal trading division of Deutsche Bank, Raymond Key, quoted by Bloomberg.
“It will exceed $2,000 and will reach higher levels. This estimate is based on the view that central banks will continue to print money,” said Key in Hong Kong, where he participated in the annual gold traders association of London.
Gold is on its way to the 12th consecutive year of price rising, amid fears that economic stimulus programs, implemented by governments and central banks will depreciate the currencies of those countries and will fuel inflation.
“Of all the metals, gold will be have the best development,” said the head of metals trading division of Standard Chartered Bank.
Gold for immediate delivery, which reached a record $1,921.15 in September 2011, was trading Wednesday around $1,728 and finished the trading session today at $1,727.80 an ounce, up 11% compared to the beginning of this year. From December 2008 until June 2011, gold rose by 70%, in the context of acquisitions of financial assets amounting to $2,300 billion by the U.S. Federal Reserve (Fed). Spot gold is up $3.10 at $1,728.50.
London P.M. gold fixing is $1,725,75, comparing to $1,726.25 the previous day. Gold futures for December closed near the highest session figures for today. Silver is also up, but other metals such as copper are on a down trend.
Fed announced in October that it would buy bonds backed by mortgages of up to $40 billion a month and will keep interest rates near zero until 2015 to support economic growth and employment.
Bank of Japan has extended a financial asset purchase program in October for the second time in two months, and the European Central Bank announced that it is ready to buy bonds of eurozone countries with financial problems.
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