4-02-2012 16:45 DJ MARKET TALK: Euro-Zone Crisis May Propel Gold To $2,500-Analyst
1545 GMT [Dow Jones] Gold will top $2,000/oz this year and rise to $2,500/oz within two years if Europe's debt troubles worsen, leading to a break-up of the euro zone, says Capital Economics. "We think that 2012 sees the euro start to fracture, with a good chance that Greece leaves this year and others follow in 2013. This would of course be a giant leap into the unknown but the uncertainties raised by the breakup of the euro would surely favor the safe haven of gold," it says. Sustained low interest rates and rising Chinese gold demand will also be supportive, it adds. Spot gold +$3.44 at $1,725.37/oz. (rhiannon.hoyle@dowjones.com)
1545 GMT [Dow Jones] Gold will top $2,000/oz this year and rise to $2,500/oz within two years if Europe's debt troubles worsen, leading to a break-up of the euro zone, says Capital Economics. "We think that 2012 sees the euro start to fracture, with a good chance that Greece leaves this year and others follow in 2013. This would of course be a giant leap into the unknown but the uncertainties raised by the breakup of the euro would surely favor the safe haven of gold," it says. Sustained low interest rates and rising Chinese gold demand will also be supportive, it adds. Spot gold +$3.44 at $1,725.37/oz. (rhiannon.hoyle@dowjones.com)