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Commerzbank Says Gold May Top $2,000 in 2013

Release Date: 
Monday, December 3, 2012

The price of gold rose as manufacturing grew in China and the euro rose against the dollar.  Gold was $1.90 higher at 5:35 a.m. Pacific Time on the New York Spot Market, trading at $1,718.10 per ounce.  Spot silver was $0.24 higher at $33.78 per ounce.  (Click here for the most current spot prices.)

Hedge funds, money managers and large investors raised bets on a gold rally by 13 percent to the highest level since Oct. 16, Commodity Futures Trading Commission data show.

Gold, silver, platinum and palladium prices could all rise sharply next year, with gold expected to top $2,000 per ounce and silver potentially hitting $40 per ounce, Commerzbank said in a research note.  “The year 2013 is likely to see precious metal prices climbing further or indeed resuming their upswing. The ultra-loose monetary policy pursued by the central banks coupled with geopolitical risks should ensure that gold remains in demand as a store of value and safe haven,” Commerzbank noted.

Central banks likely will be net buyers for the fourth straight year in 2013,, Commerzbank added. 

Juerg Kiener, Managing Director and Chief Investment Officer of Swiss Asia Capital, said that we have been seeing massive buying of gold by central banks including those of China and Russia.

(Sources:  “Hedge Funds Increase Bullish Bets Most Since August: Commodities,” Bloomberg, December 3, 2012; “PRECIOUS-Gold firms as Chinese data lifts stocks, euro,” Reuters, December 3, 2012; “Gold, Silver, Platinum, Palladium prices to rise sharply in 2013: Commerzbank,” Commodity Online, November 30, 2012; “Gold Will Soon Break to the Upside:  Pro,” CNBC, November 27, 2012)

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†This material has been prepared for private use. Although the information in this commentary has been obtained from sources believed to be reliable, Goldline does not guarantee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice.

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