Gold hit an all-time high of $1,056.30 per ounce on Oct. 8, due to loose monetary policy both domestically and globally. Analysts expect gold’s uptrend to continue.
David Abramson, managing editor of the commodity and energy service at BCA Research, says gold is always high “every time you’ve had this cyclical backdrop — when the world economy is coming out of a bad time and is starting to get better but the authorities don’t feel comfortable tightening [interest rates].”
Abramson says gold could still go up because the central banks of Japan, Europe and China, like the U.S., are also printing money. He says increased interest from average investors is another reason for the spike, as ETFs make it easier for people to invest in gold. Abramson expects gold to reach $1200-1300 per ounce by the end of the year.
Mike Zarembski, senior commodities analyst at optionsXpress, expects a steady climb in gold, with it reaching $1075-1100 by the end of the year.
“It’s going to be murky looking ahead, and volatility is going to increase as prices have risen. In the second week of November, you’ll start to see a lot of movement in the rollover between the December 2009 and the February 2010 gold contract,” says George Gero, vice president of global futures at RBC Wealth Management. He says by the end of the year, levels for gold will be in a new trading range of $950-1100.