Gold (NYSEARCA:GLD) forecasters are predicting a rally for gold prices that recently entered a downward trend. The forecasters site the stagnant economy and unresolved European debt crisis and the primary reasons for the probable uptick. By taking the median predictions from 8 of the top 10 gold forecasters, Bloomberg believes that “futures traded in New York may rise 13 percent to $1,950 an ounce by the end of the first quarter.”
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“There is a loss of trust in the entire financial system and urgent need for safe-haven investment,”said Ronald Stoeferle at Erste Group Bank AG in Vienna, the second most- accurate forecaster in the past three months per Bloomberg. “The environment for gold (NYSEARCA:GLD) is just perfect.”
The metal endured its biggest monthly decrease since 2008, forecasters predict that it will reach a new record high by March. Bullion bought for investment purposes is up from 4% in the previous decade to 38% in 2010.
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