On the Line with Gold Price Forecast : Year-end $1226 Predicted

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Chief Economist of Dundee Wealth Economics of Toronto predicts an average price of $1170 and a year-end figure of $1226.

Chief Economist of Dundee Wealth Economics of Toronto put his forecast on the line at a special 'gold breakfast' presentation. His predictions are based on three possible scenarios, all given different probability ratings - and then a weighted average figure.

Murenbeeld's predictions are always backed up with some extensive analysis. He looks not only at the bull points, but also points out some risks. This year's bullish points include reflation, a declining dollar, excessive global FX reserves, and the Central Bank's improving attitudes towards gold. Bearish possibilities include policy exit strategies in the U.S., Asia, and Europe; a strong dollar/weak euro perception; an absence of inflation; and a pop in the Chinese growth bubble.

A couple of years ago he was just about spot on with his weighted average, and last year he was slightly on the conservative side - but got the overall trend right. This year he is forecasting an average price of $1170 and a year-end figure of $1226.

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