In our 2010 outlook,  most big brokerage houses predicted gold would rise anywhere from 5-30% and finish 2010  in the range of $1150 – $1500.     Goldman Sachs 2011 prediction was within 5% of the actual price per ounce of gold which ended 2010 around $1400 USD.   To recap the 2010 predictions before we move on to 2011..

• Morgan Stanley forecast a base price of $1,200 for gold in 2010 with peaks above $1300.
• Macquarie (largest investment bank in Australia) raised their forecast for gold to $1150 per ounce in 2010 (Dec 09)
• Goldman Sachs announced on December 3rd that it has lifted its 12-month gold price outlook to $1350 per ounce from a previous estimate of $950 (Dec 09)
• Merrill Lynch sees gold at $960 an ounce in 2009 as a whole, rising to $1500 in the next 18 months

In 2011, the bullish view continues,   Most firms believe that macroeconomic conditions such as rising global debt and upward pressure on inflation will cause gold to push higher to new all time highs.

• Goldman believes low U.S. interest rates will continue to underpin the rally in commodities like gold. The firm expects the precious metal futures to climb to $1,690/oz by the end of 2011 and continue to move higher.
• Merrill Lynch predict Gold remains in a secular bull market with projected resistances at $1500-1600/oz and then in the $2000-2300 area. We have raised our long-term targets to $2000 -3000. Major support is $1265 to $1160.
• Morgan Stanley  has raised their  2011 gold price forecast in their base case by 14.3%, to an average US$1,315/oz, and in their bull case, which anticipates a more aggressive level of dollar weakness and a protracted period of negative real interest rates, Morgan Stanley has raised their price forecast to USD $1,512/oz from US$1,380/oz.
• Barclays Capital’s MD Paul Horsnell predicts that the gold price is likely to reach $1,850/oz by the end of 2011 due to strong demand from emerging markets and limited supply.

We agree with Barclay’s and Goldman and predict that gold will hit the upper end of the range around $1700-1750 by the end of 2011.    Unrest in the Mideast ,  Inflationary pressures both domestically and abroad as well as a rising debt load will provide support to gold prices in 2011.     Look for our upcoming article on the best takeover targets in 2011.   Subscribe to our email list to get the scoop to moment it hits the press!

Popularity: 100% [?]