Analyst predicts the price will reach $2,300 per ounce

Market analyst Ronald Stoeferle at Erste Group recently released a comprehensive report on Gold’s value and a forecast. Stoeferle suggests that the fourth quarter of 2012 could be extremely positive for the yellow metal; he predicts the price will reach $2,300 per ounce. Stoeferle said, “Due to its high liquidity and unique characteristics, Gold is becoming ever more prominent as collateral. Therefore, we are currently seeing the renaissance of Gold in international finance. The foundation for a return to ‘sound money’ has been laid.” He added, “Gold is now officially again ‘as good as Gold’ and ranks on the same level as cash. We expect this decision to have a wide range of implications. For example, the opportunity cost of holding Gold will be reduced massively.”

One American consumer sentiment index fell to its lowest point this year with an unexpected decline to 72 in July, compared with June’s reading of 73.2. Reasons include one of the weakest quarters in corporate hiring in two years and an unbalanced stock market that is attached to the ongoing European debt crisis. Sean Incremona at 4Cast Inc. said, “We could continue to see a fairly mild trend in consumer spending. Employment is the main factor that’s really keeping the consumer underweight at this point.”

At 1:01 p.m. (EDT), the APMEX Precious Metals spot prices were:

  • Gold, $1,592.70, Up $25.80.
  • Silver, $27.44, Up $0.20.
  • Platinum, $1,431.70, Up $19.20.
  • Palladium, $587.00, Up $11.20.
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