Strong buying demand out of China pushes gold higher for a second day, rising 0.5% to $1,639.60 an ounce. Despite a rise in the dollar index, gold bullishness prevailed on record imports from Hong Kong ahead of the Chinese New Year later this month.
Gold prices are up 2% so far this week, now sitting at a 4-week high. The precious metal also closed above the 200-day moving average of $1,632.69 an ounce; signaling what could be a significant shift in sentiment.
Several major Wall Street firms are expecting prices near or above $2,000/oz in 2012. Here are a few of those gold targets:
Goldman Sachs: $1,940/oz.
Morgan Stanley: $2,200/oz.
"We predict that $2,400 is a reasonable target for this year," says Donald Doyle, Chairman & CEO at Blanchard & Co. —the largest retail metals dealer in the U.S. "The principle factors that are pushing gold higher now have really been in place for some time."Read More »from Gold Prices at 4-Week High on China Demand