Deutsche Bank Forecast $2,000 For Gold, Says Not A Bubble

alifarabia | August 3, 2011 | Featured Gold, Gold, Slider | No Comments

Gold may have risen 521% since 2001, but Deutsche Bank thinks gold prices will need to rise a good $550 more before it will be considered a bubble.

“In our view, the prospect of powerful rally in gold reflects ongoing stress in the financial system and the maintenance of super low interest rates. The popularity of physically backed gold ETFs have also changed the relationship of the gold price to the US dollar such that gold can now rally in both rising and falling US dollar environments,” says Deutsche Bank.

The bank has a target price of $2,000 for a Troy ounce of gold, before it expects the market would be ‘considered a bubble’.

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