Gold seen hitting $2,000 on euro panic and US inflation

City A.M. Reporter
PANIC over the ongoing Eurozone crisis could push gold over the $2,000 mark in the next year, a leading metals consultancy warned yesterday.

Investors worried about investing in equities or bonds, or concerned about rising inflation, may put cash into assets like gold and silver to keep their money safe.

After rising for four days straight through market turmoil, the price levelled off yesterday.

Metals consultancy GFMS, a unit of Thomson Reuters, said in its annual outlook for the gold market that a record high price above $2,000 an ounce next year could mark the peak of the precious metal’s bull run of more than a decade as monetary policy in major economies starts to tighten.

Monetary easing in the US is also expected to push gold higher as investors use it as a hedge against inflation.

Furthermore, demand from China rose sharply in February – exports from Hong Kong were up 20 per cent – as the country is poised to overtake India as the world’s largest buyer of the precious metal.