The Lexington Group Forecasts Gold to Trade above $1,600 at the End of the Year

Analysts at The Lexington Group predict gold to rally strongly in the second half of 2013. Citing a variety of factors including military intervention in the Middle East, quantitative easing, and increased consumption. End Quote

(1888PressRelease) October 11, 2013 - Gold has been one of the worst performing commodities this year, losing more than 20% of its value since January. Analysts at The Lexington Group believe that the gold market has bottomed out and gold will rebound very strongly in the second half of 2013. They have identified a number of factors which will drive the yellow metal's value higher.

In the short term The Lexington Group analysts believe that military intervention in Syria will spur prices up. Gold is a safe haven for assets at a time when political unsuitability and conflict can disrupt the markets. Investors are also concerned about escalating violence in Egypt. Gold is likely to perform well during crisis times.

Analysts have also noted quantitative easing as a major driver of gold prices. Central banks print more money to boost growth, but the more it prints the weaker the currency becomes. As the currencies become weaker gold can fetch a higher price.

Increased consumption from the Middle East to Asia, primarily in China and India will drive the price higher. China consumes nearly 100% of the world's gold mine production. When prices of gold plummeted in March the gold trade increased from under 10,000 kilograms daily to more than 40,000. Not only does the government stock pile the precious metal, but there is also a strong correlation between rising incomes and gold prices in these emerging nations. There is an increasing demand for jewelry in the emerging markets.

###

space

Other Related Press Releases