Gold Prices could hit $1,200/oz, says Commerzbank

Leading German analysts predicted yesterday (October 14th) that Gold Prices have the potential to push as high as $1,200 per ounce, the Wall Street Journal reports.

The yellow metal has already confounded its critics this month by overcoming expected resistance at around $1,000 per ounce and smashing into all-time high territory.

Now a team of commentators from Commerzbank, which is the second-largest bank in Germany, has explained that further gains are possible if the $1,066 level is breached.

"A weekly close above $1,057 is still needed in order to confirm that it has been cleared. Above here would introduce scope towards $1,191," they said in a report quoted by the news provider.

Last week, strong rumours emerged about the possibility of Arab national holding secret talks with France, Russia and China about replacing the dollar as the main oil trading currency.

With the greenback sharing an inverse relationship with Gold Prices, Suki Cooper, an analyst from Barclays Capital, explained that the yellow metal would inevitably benefit if the claims are true.

"The dollar weakness appears to be related to ... [alleged] secret talks about oil being priced in a basket of currencies including gold rather than the dollar, which has added to concerns about the future role of the dollar in international financial markets," she said.

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