Gold
$1286.4
Change
$1.3
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$19.48
Change
$0.03
Platinum
$1422.8
Change
$3.2
Palladium
$890.2
Change
$0.6

How the Experts View Gold Prospects

Thursday, February 16th, 2012 at 8:18 am

One of the most important things for a gold investor to do is keep up with what the market and industry experts are saying about the prospects for the metal. In recent times, following market news has become even more important because of the uncertainties in the economic conditions in various parts of the globe. Since gold is a global asset, economic fluctuations anywhere in the world do have an impact on its prices. If you are planning on investing in gold bullion now, here is some information you can use.

Recent Happenings in the Market

In the face of continued uncertainty in the Eurozone, analysts and market experts have been laying stress on the fact that temporary stability in the dollar’s position should not become cause for investor complacency. The fate of the dollar is linked to the prosperity of European nations, although in an indirect way.

The debt crisis is ensuring that investors everywhere, including the U.S., are retaining their cautious approach to cash based assets. This approach has not changed significantly even though the dollar is showing periods of value rise. When investors lack faith in the dollar and other currencies, hard assets like gold bullion perform very well. The growing sales of gold coins in the U.S. stand testimony to this trend.

The Standard Bank Forecast for Gold Prices

The recent Standard Bank forecast for gold says that the price of this precious metal is likely to go up about 13% when compared with 2011 average price figures. On the downside, this forecast is lower than what was predicted in 2011 when gold was expected to zoom to unimaginable levels in a very short time. However, investors should not lose focus on the fact that the metal is still predicted to go up price wise quite significantly which makes it a good investment even now.

The reasons quoted by the bank to back its prediction are many. According to the forecast, global market volatility continues to be a prime factor in keeping gold bullion prices high. Since investors worldwide still consider gold a safe haven asset, the demand is likely to remain strong, the bank maintains.

As explained by the Global Head of Commodity Research at the bank, Mr. Walter de Wet, the bullish trend is set to continue since global liquidity will support gold and cause it to retain its strong position in the market. Clearly, the analysts believe that if you do want to buy gold to add to your portfolio, the time is still right.