Gold Price 22 500 U.S. dollars per troy ounce at End of Year 2011, Gold price volatility is also high, due to lower U.S. credit ratings. "Before the downgrade, we estimate the price of gold will reach 1800 U.S. dollars per troy ounce by the end of this year. But with the present circumstances it seems this view is very conservative," said analyst Colin Fenton and Jonah Waxman.
The price of gold this morning at the Hong Kong market has reached 1740 U.S. dollars. In addition to JP Morgan, another bank has also changed the estimated price of gold. JP Morgan's new estimate is 39 percent higher than the previous estimate of 1800 U.S. dollars.
The new estimates are about 800 U.S. dollars higher than the price of gold now. Previously, other banks, Goldman Sachs also forecast the price of gold increases.
Goldman said his economists have estimated the likely U.S. recession is one in three, and probably will happen within the next six months. However, the estimated price that Goldman is much lower than the estimate of JP Morgan.
Golman estimate the spot price of gold will reach 1645 per troy ounce in three months and 1730 per troy ounce in the next six months.
Morgan Stanley, ANZ, UBS, MF Global and Barclays Capital last week also revised its estimate of the price of gold in their research. While gold producers like Barrick Gold (ABX), AngloGold Ashanti (AU) and Randgold Resources (GOLD) also projected gold prices keep rising in recent days.