‘Gold will glitter at new highs in 2012', says Goldman Sachs
Forget frankincense and myrrh, gold will be the star commodity to follow in 2012, predicts Wall Street giant Goldman Sachs, writes Rob Davies.
The yellow metal will peak at $1,900 per ounce next year, the bank said, forecasting an annual average of $1,810.
Among the catalysts it pointed to were the continuing environment of low interest rates, low risk appetite and limited supply of the precious metal.
'Giant vampire': Goldman Sachs predicts gold will be the star commodity in 2012
Goldman’s forecast of further rises in the gold price signals a second consecutive record year for the commodity, seen as a safe haven investment in times of economic turmoil.
The average morning fix price at the end of the month was $1,571 in 2011, including a record peak of $1,896 in August.
Gold-mining equities are unlikely to match the performance of the metal itself, Goldman warned, due to the rise of exchange traded funds which allow an alternative route into investing in gold.
But its analysts singled out European Goldfields and Centamin Egypt as potential strong performers, despite a difficult year for the latter amid political upheaval in Egypt.
The bank, once described by Rolling Stone magazine as a ‘giant vampire squid wrapped around the face of humanity’, downgraded Randgold Resources and AngloGold.
Most watched Money videos
- Iconic Dodge Charger goes electric as company unveils its Daytona
- Land Rover unveil newest all-electric Range Rover SUV
- 'Now even better': Nissan Qashqai gets a facelift for 2024 version
- MailOnline asks Lexie Limitless 5 quick fire EV road trip questions
- Skoda reveals Skoda Epiq as part of an all-electric car portfolio
- The new Volkswagen Passat - a long range PHEV that's only available as an estate
- How to invest to beat tax raids and make more of your money
- Tesla unveils new Model 3 Performance - it's the fastest ever!
- Mercedes has finally unveiled its new electric G-Class
- Mini celebrates the release of brand new all-electric car Mini Aceman
- 2025 Aston Martin DBX707: More luxury but comes with a higher price
- How to invest for income and growth: SAINTS' James Dow
- MIDAS SHARE TIPS: Tech tie-up in war on fake banknotes...
- ODYSSEAN INVESTMENT TRUST: Newcomer's knack for seeing...
- Ten years in the creation: Secrets of the new King...
- How much longer can insurance firms persist with a tax on...
- Shipping shame as Clarksons braced for EIGHTH pay revolt
- Savvy savers take revenge on banks: £5bn drained from...
- Water giants drowning in a sea of debt borrowing even...
- Disney set to report jump in profits just weeks after...
- Should you take out insurance to spare your family from a...
- Elderly father who was duped into £25k debt by scam...
- Britain 'must lay out red carpet' to retain top tech firms
- Baroness Bowles: Nationwide using sneaky tactics to avoid...
- Tory grandee Norman Fowler reveals how he relaxed after...
- CITY WHISPERS: Mystery lingers over whether Darktrace's...
- Older workers will sustain growth, says HAMISH MCRAE: In...
- MIDAS SHARE TIPS UPDATE: Cohort is reaping the benefits...
- Homeowners dealt fresh blow as experts warn mortgage...
- INVESTING EXPLAINED: What you need to know about primary...