Gold Bullion will climb as high as $1,780 this year according to MKS Finance SA. Although the
has fallen in recent days on the back of improved economic data, many
analysts believe investors will continue to buy precious metals as a
protection of wealth.
Prices dropped 2.4 percent yesterday and today swung between a gain of 0.3 percent and a loss of 0.2 percent.
"Gold fell too much yesterday" said Chris Kwon, a trader at KTB
Securities Co. in Seoul. "Improving economic data appears to provide
just some short-term weakness for gold. Overall, the uptrend remains
intact as the U.S. economy is not in a full recovery yet and interest
rates remain low."
A short term drop in the price of bullion is clearly an excellent opportunity to take advantage of a longer term increase.
Gold jumped 30 percent last year after governments spent trillions of
dollars and kept interest rates low to bolster economies following the
worst global recession since World War II. This year, bullion will
average $1,502 an ounce.