Swiss financier: Gold will strike $1,780 per troy ounce in 2011

January 5, 2011 2:59 PM EST
Despite the sinking trend gold prices have shown thus far this year, gold bullion will rebound with a vengeance to the average price of more than $1,500 per troy ounce and reach a top value that approaches $1,800 per troy ounce, according to a Switzerland-based financier.

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One of two significant drivers to gold's soaring success in 2010 were the U.S. Federal Reserve's efforts to stimulate the nation's economy by announcing $600 billion worth of quantitative easing in November.

The second driver is the debt crisis permeating many European banks that saw the International Monetary Fund and the European Union grant bailout packages to Greece and Ireland. Spain and Portugal are believed to be the next in line to request aid.

A Wednesday report from MKS Finance of Geneva forecast gold bullion's average price in 2011 will be $1,502 per troy ounce and the value for the precious metal will soar as high as $1,780 per troy ounce.

Having reached a record price of $1,431.25 per troy ounce this past December 7, the price of gold was $1,374.50 per troy ounce just before 2 p.m. on Wednesday.

 

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TL/DR Gold will be priced over $1700 per ounce by year end.