Gold ‘Clear Winner’ From Stimulus, to Hit $2000: Pro
Gold is the “clear winner” from global stimulus measures, according to a report by UK research firm Capital Economics, which says that gains to other commodities such as oil and copper are likely to be brief.
However, in a report from Capital Economics published on Friday, Head of Commodities Research Julian Jessop said commodity prices were likely to fall back as market focus returned to the deteriorating economic circumstances that made stimulus measures necessary.
“Commodity markets cannot simultaneously bank on strong economic growth and unlimited easing by the Fed, or indeed on strong economic growth alongside further large gains in commodity prices,” Jessop said.
He forecast Brent crude oil prices would drop back to average $85 per barrel in 2013, while prices would fall to $5,000 per ton.
Jessop was more bullish on gold however, predicting prices will reach $2,000 per ounce.
“The price for the precious metal should benefit further from talk of unlimited money printing,” he said.
“But we do not think that is essential for it to reach new highs. Our forecasts place more weight on a revival of safe haven demand as the euro zone crisis flares up again.” (Read More: Gold Set for Even Bigger Bernanke Boost)
— By CNBC.com's Katy Barnato