'Gold prices may touch $2,000 an ounce'

'Gold prices may touch $2,000 an ounce'

Gold prices are likely to increase for the third consecutive year and would touch a record high of $2,000 an ounce in 2012, said a survey.

According to the annual London Bullion Market Association (LBMA) survey which covered 26 precious metal analysts, the average forecast for the precious metal for 2012 is $1,766 per ounce.

The average forecast for gold this year ($1,766 per ounce), a 12.34 per cent rise from average price in 2011 and a 10.2 per cent increase compared to the price in the first week of January, 2012. Out of the 26 contributors to the survey, 19 expect gold to cross the $2,000 per ounce level in 2012.

Gold soared to an all time high in 2011 on strong demand as precious metals are considered as a ‘safe-haven investment’ in times of economic turmoil and rising inflation.

In India, gold (99.5 per cent purity) crossed the Rs 29,000 per 10 grams-level to a historic high of Rs 29,155 per 10 grams in December, 2011 (one ounce equals to 28.35 grams).

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