When It Comes To Gold Prices, Even The Most Reliable Forecasters Are At Odds About How High They Can Go

Danske Bank’s Christin Tuxen has been the most accurate price predictor over the last eight months and says prices should average $1720 per ounce in 2013 and $1600 per ounce in 2014.
Credit Suisse’s Tom Kendall predicts prices of $1740 and $1720 respectively. UniCredit’s Jochen Hitzfeld predicts $1700 and $1800.
Record average prices are predicted by all three during 2013 because global central banks’ policy stimulus is still inciting investors to hedge against inflation and currency devaluation.
The top six precious metals analysts followed by Bloomberg are also still bullish for this year. Only when Fed policy changes and monetary policy begins to tighten is the price of gold expected to begin to decline.
The danger point will be when key interest rates rise above the inflation rate. But so far, there is no end in sight to the currently negative real interest rate environment.

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