FACTBOX-Precious metals price forecasts

LONDON, Dec 7 (BestGrowthStock) – The price of gold, which hit a
record high on Tuesday above $1,425 an ounce, is expected to
remain well supported next year as investors favour the metal as
a safe store of value amid instability in the financial markets.

Silver prices are also expected to extend their recent rally
to 30-year highs on gold’s coat-tails, though analysts warn the
metal is more prone to volatility. Platinum and palladium are
also expected to benefit from recovering economic growth.

Gold was bid at just above $1,425 an ounce midmorning on
Tuesday, while silver was near $30.40 an ounce, platinum was
just above $1,720 an ounce and palladium was near $760 an ounce.

Below are recent price forecasts for gold (XAU=: ), silver
(XAG=: ), platinum (XPT=: ) and palladium (XPD=: ). Please note dates
given are those of the reports in which the forecasts appeared,
which may differ from the dates on which they were made.

MORGAN STANLEY (DEC 5)

* Morgan Stanley said it expects gold prices to average
$1,203 an ounce in 2010, rising to $1,315 an ounce next year
before easing back to $1,250 an ounce in 2011.

* It expects silver prices to average $18 an ounce this year
and $20 an ounce in 2011 and 2012. The bank also said it sees
platinum rising from $1,622 this year to $1,624 in 2011 and
$1,783 in 2012.

* “Gold, despite hovering at record highs, is likely to edge
higher on sovereign concern and growing inflation anxiety,
particularly in the (emerging markets),” it said in a note.

GOLDMAN SACHS (DEC 1)

* Goldman Sachs said in a research report it expects the
gold rally to continue in 2011, with prices averaging $1,575 an
ounce next year.

* The bank says it sees gold at $1,480 an ounce, $1,565 an
ounce and $1,690 an ounce in three, six and 12 months
respectively.

* “While we are introducing a 2012 average gold price
forecast of $1,700 an ounce, we think it is prudent for gold
investors to begin to prepare for gold prices to peak in 2012,”
it said in the report.

SOCIETE GENERALE (NOV 30)

* Societe Generale expects gold prices to average $1,225 an
ounce this year, rising to $1,485 an ounce in 2011 and easing
off to $1,400 an ounce in 2012.

* The bank said it sees silver at $20.10 an ounce, $29.50 an
ounce and $30 an ounce respectively in the same years.

* “The gold price should reach fresh all time highs in 2011
driven by mounting inflation fears fuelled by super lax U.S. and
euro zone monetary policies,” it said.

BNP PARIBAS (NOV 30)

* BNP Paribas raised its 2011 gold forecast to $1,500 an
ounce from $1,245 previously, and said the metal was likely to
average $1,600 an ounce in 2012.

* The precious metal is likely to average $1,365 an ounce in
the final quarter of 2010, rising to $1,415 in the first three
months of 2011 and $1,500 in the second quarter. In the third
quarter, it sees gold at $1,515 an ounce.

* “Investment demand is rebounding with euro zone motivated
safe haven flows, the official sector continues to be an active
buyer of gold, while demand from the jewellery sector entered
its seasonally strong quarter in October,” it said.

BARCLAYS CAPITAL (NOV 29)

* Barcap said it expects gold to average $1,380 an ounce in
the fourth quarter of 2010, rising to $1,410 an ounce in the
first three months of next year, $1,450 in the second quarter of
2011 and $1,490 in the third quarter.

* In 2010 as a whole, it sees gold averaging $1,228 an
ounce, rising to $1,445 an ounce next year and $1,300 in 2012.

* “We maintain a positive view across the complex given the
gold-favourable backdrop of low interest rates, concerns about
currency instability and sovereign debt set to drive prices into
uncharted territory,” the bank said.

BANK OF AMERICA-MERRILL LYNCH (NOV 11)

* Boa-ML expects gold prices to average $1,233 an ounce in
2010, and silver to average $19.91. Next year, the bank sees
gold at $1,425 an ounce and silver at $29.50.

* “Excess liquidity provided through QE2 is… positive for
precious metals, which is one reason we have lifted our silver
price forecast and anticipate the metal to average $37.5/oz by
2013,” it said. “Gold also looks to be supported.”
(Compiled by Jan Harvey; editing by James Jukwey)

FACTBOX-Precious metals price forecasts