Morgan Stanley: Average gold price to hit 1,315 USD per oz. in 2011

Morgan Stanley not long ago said a average bullion cost will stand at 1,315 U.S. dollars per unit in 2011, up from 1,203 U.S. dollars per unit in 2010.

Analysts describe themselves as "increasingly positive" on a outlook for bullion for 2011. This is in part due to a embracing a cause of a second turn of quantitative easing, good known as QE2, by a U.S. Federal Open Market Committee in November.

The certain stroke on bullion prices from QE2 derives from a progress to financier demand for hedges opposite a hazard of approaching deflation or subsequent inflation since of additional growth in a income supply, according to Morgan Stanley.

Analysts additionally expect investment demand for bullion to remain clever since a resurgence of a European emperor debt crisis. This should progress bullion as investors find protected havens. Another progress could come if a European Central Bank moves to adopt quantitative easing through a unsterilized purchase of peripheral euro members' supervision bonds.

Other factors pushing prices include a tensions on a Korean Peninsula as good as central bank demand, Morgan Stanley says. It cites World Gold Council data, which showed a official sector posted a sixth straight entertain of net purchases in a third quarter.

Agencies minister to this story.

By Liang Jun, People's Daily Online

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