$2,000 Gold by Q3 2012 as “Commodity Investment Flows Rebound,” Barclays Says

Gold is likely to reach a new all-time record high above $2,000 per ounce during the third quarter of 2012, according to analysts at Barclays Capital.

The firm predicted that the yellow metal will rise 21% by the end of the year, which would put it at approximately $1,892 per ounce.

The broader commodities sector is likely to post solid gains this year, Barclays contended, and precious metals are expected to outperform base metals, energy, and agricultural products.  As for silver, the firm forecasted that it will follow a similar trajectory to that of gold by peaking in the third quarter.

In a report to clients, Barclays wrote that “We believe commodity investment flows will rebound in 2012, but will not go back to the very high levels reached in 2009-10. An easing in the unusual factors which capped flows last year, ie, the European debt situation, along with what we expect to be an economic stabilization, should provide upside potential to commodity investments.”