Gold may increase in prices to 2 thousand USD per ounce

January 29, 2013

Bloomberg reports that gold may increase in prices to 2000 US dollars per ounce but it is not going to happen soon. The price for gold will reach 1830 US dollars per ounce by the end of this year. Morgan Stanley analysts believe that the price for gold will rise in the next year, since the US Federal Reserve is likely to continue buying assets for another two years to support the recovery of the world’s biggest economy. In the last three months of 2012 there was the biggest quarterly drop in gold prices since 2008 as there are clear signs of the US economic recovery and growing fears that FRS may reject bond purchasing programme. The FRS is purchasing Treasury bonds and mortgage debt worth 85 billion US dollars every month. However, Morgan Stanley and Danske Bank together with Credit Suisse Group AG have different predictions about prices for gold. The latter predict that this year the prices will peak and begin to decline and the average price for gold will reach 1720 US dollars per ounce in 2013 and 1600 US dollars per ounce in 2014.