LONDON (Commodity Online): Gold and silver to regain their shine during 2012, describing gold’s pullback from record highs during the latter part of 2011 as temporary weakness, said Commerzbank in a research note.
“Skepticism among money managers is primarily to blame for the current phase of weakness on the gold market. Gold should resume its upward trend as the year progresses, though. Strong investment demand coupled with central banks’ increasing interest in purchasing gold should help gold attain its record high again by year’s end,” Commerzbank added.
Commerzbank looks for gold to average $1,725 an ounce for the year. Gold may be sideways during the early part of the year. It looks for an average of $1,600 in the first quarter but an average of $1,900 in the fourth.
“Following a rollercoaster ride in 2011, rising industrial demand coupled with growing investor interest should prompt a sustainable increase in the price of silver,” Commerzbank added.
Analysts list a full-year average forecast of $34 for silver, with an average of $30 in the first quarter but increasing to $38 in the fourth.
