Analysts raised their 2011 forecasts more than for any other precious metal as gold is expected to rally to $1,500 an ounce by December.
No matter whether the economy will recover or not, Eugen Weinberg, analyst at the Commerzbank AG said gold will always bring new buyers to the market.
Investors added to their gold holdings through ETPs for three consecutive weeks, reflecting demand for assets which are usually picked in times of financial stress. According to Bloomberg, ETP holdings reached a record 2,078 tons on 19 July. Soros Fund Management LLC is one of the biggest buyers while Soros described gold as “the ultimate asset bubble” at the World Economic Forum earlier this year.
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