While gold price is not currently at its highest, analysts are sticking out of your neck in favor of the position that price of gold is still going to rise to levels currently experienced. The level of success achieved by gold cannot be easily appreciated until the $300 an ounce cost of the metal just 11 years is brought into perspective.
Considering the fact that gold is hovering around the $1500 an ounce mark today fully tells the story. Even then that is not the full story if what analysts are saying is anything to go by. Just this year alone, some analysts believe that gold will steal art and an additional $200 an ounce with a target of about $1700 level set for the end of 2011.
In fact it has been predicted that by the end of year 2012 gold would have crossed the $2000 an ounce mark and that the upward price drive will still continue beyond that level. It's very easy to think about these predictions are mere fantasies of an excited analyst on till the facts and figures are considered. For example, the physical demand for gold has remained high despite recent record-high price levels.
All the reasons for this position include the fact that gold is currently the defying historical trend of price dips that are usually associated with the attainment of round figures such as 900, 1100, 1300 and 1400. Currently demand for gold has continued to increase his despite the attainment of these round figures. Analysts therefore believe that the last on the price of gold is yet to be heard.
Many global realities seem to support the position of a continued rise in the price of gold include global inflation, increasing sovereign risk in the euro zone, widening economic disparity between the big two and the peripheral European economies, the political turmoil in North Africa and its attendant effects on oil prices-- among many others.
