From the UK Telegraph:
Investors seeking a safe haven from current market turmoil could see the gold price rally to "at least" $1,400 an ounce next year, according to Capital Economics.
On Friday the gold price continued its record-breaking run – having hit a new high seven times in the past two weeks – briefly crossing the $1,300 level, hitting $1,300.07 in intraday trade. Silver prices are also at their highest level since 1980, climbing to $21.44 in intraday trade. Bullion traders expect prices to continue to rise next week.
Concerns that the Federal Reserve will have to embark on another round of quantitative easing after the US economic recovery stalled caused the dollar to fall against major currencies. Gold prices usually move inversely to the dollar.
"We now expect gold prices to stay high for several more years," Capital Economics said. "Fears of runaway inflation or a dollar collapse remain exaggerated," the economic consultancy added. Prices should continue to be supported by strong demand for a safe haven from other potential economic and financial shocks "such as a US-China trade war and the break-up of EMU," it said.
Gold prices have risen by 18pc this year, with silver rising 27pc. Both precious metals have outperformed shares, treasuries and most industrial metals. Gold is on track for its 10th consecutive yearly gain – its longest winning streak since before the Second World War.
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