A LEADING investment bank has raised its forecast for Gold Prices – while also lowering its forecast for commodities as a whole.
Goldman Sachs says it believes the Gold Price will average $1930 per ounce over the next 12 months. Its last 12-month forecast, made three months ago, was for Gold Prices to average $1860.
"We continue to recommend long trading positions in gold," the bank says.
"We expect that Gold Prices will continue to be driven in large measure by the evolution of US real interest rates and with our US economic outlook pointing for continued low levels of US real rates in 2012."
Goldman has also raised its 12-month forecast for Silver Prices, to $32.20 per ounce – up from $31.10.
Goldman last month forecast a 20% gain in 2012 for the S&P GSCI Enhanced Commodity Index. It has cut this forecast, but still expects the index to grow by 15% next month.
"Notwithstanding the continuing European crisis, we maintain our view that global growth will provide enough support to demand to drive key commodity prices higher over the next 12 months," said the Goldman report.
While the European debt crisis may weight on broad commodity prices, it is seen by Goldman as "skewing the balance of risks to higher Gold Prices."
Get the safest gold at the lowest prices with BullionVault...