Gold investors extend their bullish streak as analysts from Bank of America to Deutsche Bank forecasted record high prices by the next year after the Fed pledged more action to stimulate the economic growth. In a recent survey conducted by Bloomberg, majority of analysts expected the prices to rise.

The Fed announced a third round of debt-buying ‘economic growth’ on September 13 and the Bank of Japan announced to buy assets worth $128 billion. Similarly, the European Central Bank announced an unlimited bond buying program on September 6 and China declared a $158 billion infrastructure development program. The price of Gold rose to 70 percent as Fed bought $2.3 trillion of debt in the two rounds of quantitative easing from December 2008 through June 2011.

Gold is one the commodities that will benefit most from the debt buying program; which weakens the dollar, gold’s traditional hedge. Gold is expected to hit a record high of $2000 an ounce in the future.

Have a great weekend everyone!

Note: This blog is just an expression of the author’s opinion and cannot be deemed responsible for any losses incurred.