Gold May Reach $2,000 an Ounce by Yearend, Bank of America Says

Gold prices may climb to $2,000 an ounce by the end of the year because the Federal Reserve probably will announce a third round of bond buying, Bank of America Merrill Lynch analysts Sabine Schels and Michael Widmer said in an e-mailed report today.

“Loose monetary policies with a scope for more aggressive balance-sheet use in the U.S. and Europe will keep real rates in most reserve currencies low (or negative) in 2012,” the analysts said. “We continue to believe this will allow investor demand for gold to remain strong.”

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