A Reuter’s poll of analysts suggests that gold will be pushed higher due partly to the Federal Reserve’s recent decision to engage in further quantitative easing. Most respondents to the survey suggested gold will peak between $1,400 and $1,500 an ounce by mid-2011.
“QE devaluates the currency, so gold…and almost all commodities will be beneficiaries as people start to switch from financial assets to commodities, something they feel more tangible as the money printing continues,” said Standard & Poor’s Equities and Metals analyst Leo Larkin.
Source: Reuters