Gold Price Will Hit $2000 Within Two Years.

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Sam Stovall, chief investment strategist of standard & Poor's, said in an interview with China Securities Journal 25, that gold price will exceed 1800 dollars per ounce, and it is likely to reach 2000 dollars per ounce.

Joseph Kinder, chief global investment strategist at Merrill Lynch, told the China Securities Journal that the factors driving gold prices will not change in the foreseeable future.

In addition, Zach Campbell, a CNBC commentator, said in a live broadcast that the price of gold was 5000 dollars an ounce in two years "not a problem".

Earlier, Deutsche Bank released a report that gold prices would reach $1571 an ounce in 2011 and $2000 in 2012.

The 2011 gold report, released by GFMS, the world's leading precious metals consultancy, shows that gold will reach $1600 an ounce before the end of the year.

In addition, many investment banks, such as Merrill Lynch and Goldman Sachs, also maintained a buying rating for gold.

Stovall said that the rise in gold prices was driven by many reasons.

First of all, most of the economies in the world are worried about inflation. In this case, gold will be the first choice to resist inflation, and the demand will increase.

Second, as S & P had previously lowered its outlook on US sovereign credit prospects, it aggravated investors' worries about the budget deficit of the US government.

With regard to the pressure given at home and abroad, the US government will do its best.

Therefore, in the foreseeable future, the Federal Reserve will maintain very low interest rates.

At low interest rates, the gold market has become an important market with excessive liquidity.

Third, the gold mining rate will remain low in the next twelve years, and the limited supply will not keep up with the growing demand, which will further push up the price of gold.

Fourth, as a "hard reserve", central banks will increase their share of gold reserves under the trend of depreciation and inflation of the US dollar.

Prices have not been overestimated.

Wall Street analysts interviewed by China Securities Daily believe that gold prices are still in a reasonable position and there is no possibility of overvaluation.

In addition to the above four factors that push gold prices as a reasonable support for gold prices, Stovall said that in the past twenty years, the comparison of gold prices and stock prices is not difficult to see that gold prices have not been overestimated.

From December 31, 1999 to March 31, 2011, the S & P 500 index dropped nearly 10%, but the gold price rose by nearly 400%.

Since the US stock market hit bottom in March 2009, the S & P 500 index has risen 96%, and gold price has risen by more than 50%.

However, Alec Jan, a global equity analyst at S & P, said that although gold is in a bull market in the long run, gold prices may still be volatile in the short term, or even exclude the return to the support line.

This is because the correlation between gold and silver is stronger. Silver is likely to go down in the near future, so gold may fluctuate in the near future.

Mark Abbott, chief technology analyst at S & P, said the US dollar trend is often seen as a trend in commodity markets, especially in the gold market.

The depreciation of US dollar in the future is still hard to change.

In this case, the metal market, especially gold and silver, will continue the bull market trend.

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