Gold’s Heading to $2000, Strategists Say

Gold is still struggling to top the year-to-date high set back in February, despite the boost bullion prices got last week from the Fed’s latest loose-money plan.

But Wall Street is feeling enthusiastic about gold nonetheless, in the wake of the announcement that the central bank will buy up billions in mortgage-backed securities every month for the foreseeable future. On Tuesday Deutsche Bank and Bank of America Merrill Lynch both predicted in research notes that gold will shine in the months ahead.

Deutsche Bank said gold prices would top $2,000 per ounce in the first half of 2013, which would represent at least a 13% gain over Tuesday’s settle price of $1,768.40 in the New York futures market – as well as a new record high in nominal terms, well above the $1,888.70 hit in August 2011. Gold hit its high for 2012 on Feb. 28, when prices settled at $1,787.

“We expect the gold market to continue to respond positively to further central bank activity – which in our view is likely to continue to be biased towards further monetary expansion,” the bank’s analysts wrote.

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http://blogs.wsj.com/marketbeat/2012/09/18/golds-heading-to-2000-strategists-say-thanks-qe3/?mod=google_news_blog