Gold to Hit $1100/oz Early 2010: JPMorgan

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"Overall it's looking for gold to average around $1,000 an ounce in the fourth quarter. . ."

With the gold prices hitting record highs in the past few weeks, global bullion analyst JPMorgan has changed its forecast and said the metal will hit $1,050–1,100 per ounce likely in early 2010.

The bank said it has revised its 2009 price view for gold up to $948 an ounce from $939 an ounce predicted in July. It said it now sees silver at $14.30 an ounce, against a previous forecast of $13.90.

For next year, it lifted its gold and silver forecasts to $1,006 an ounce from $950 and $15.80 an ounce from $13.40 respectively, a rise of nearly 18% in silver’s case.

Overall it's looking for gold to average around $1,000 an ounce in the fourth quarter but new highs between $1,050 and $1,100 look likely for early 2010.

Spot gold hit record highs on three successive sessions this week, peaking at $1,061.20 an ounce on Thursday.

The bank also lifted its forecasts for base metals copper, aluminum, nickel, zinc and lead for 2009 and 2010, though it said it expects 2010 to be a year of consolidation in the base metals, as opposed to a year of new highs or lows in price.

JPMorgan said it now sees copper averaging $4,998 a tonne this year, up from a previous forecast of $4,775, and raised its price view for aluminum to $1,647 a tonne in 2009 from $1,608.

Next year it sees copper at $5,950, against a former view of $5,563.

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