CIBC was the latest investment bank to raise its gold price forecasts, and now sees the yellow metal reaching $2,200 per ounce by 2013.
In a report published this morning, CIBC World Markets analyst Barry Cooper lifted his average gold estimates to $1,625 from $1,550 in 2011, and to $2,000 from $1,700 in 2012. He also introduced a $2,200 estimate for 2012.
“With the recent debt issues in both the U.S. and Europe, and weak economic data coming out of both sides of the Atlantic, we believe the safe haven characteristics of gold will again play an important role in the performance of the metal,” he wrote.
Cooper went on to say that “The robust outlook for bullion remains intact as we continue to see debasing of currencies as the key contributor to gold’s rise. With the S&P ratings downgrade of U.S. debt and a weak economic outlook, talk of another round of QE3 (or some form of it) is alive and well. Additionally, it looks like Europe’s debt issues are poised to increase after initial help for Greece that in all likelihood is going to cascade to other nations in debt default probability such as Portugal, Spain, Ireland, and Italy. A discussion led by Germany and France did not amount to a solution to resolve issues that continue to impact the EU. Unlike the U.S. however, the EU is limited in its ability to print money since no one country can solve its own problems by issuing deflated currency. Collectively, that problem may manifest itself down the road with the Euro suffering the same declines as witnessed with the U.S. dollar over most of the past decade.”
source: http://www.goldalert.com/2011/09/cibcs-golden-outlook-includes-2200-by-2013/
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