gold

Investors should remain long gold through 2012 as
uncertainty weighs on the broader markets and loose monetary policy secures
gold's role as an alternative store of value, says VTB Capital analyst Andrey
Kryuchenkov. He forecasts a retest of the market's all-time high of
$1,920.04/oz early in the new year. Longer term players and physical buyers are
likely to return in 1Q, while the metal's recent correction may encourage
others back to the market, he says. Strong ETF and central bank demand will
also be positive for prices, he adds. "There is little alternative to gold in
times of economic uncertainty, despite the recent rush for the dollar. Gold
stands on its own in terms of safe haven buying and bullion allocations are
only likely to gain with currency protectionism still at large." Kryuchenkov
forecasts an average just below $2,000/oz next year. Spot gold recently traded
+$17.50 at $1,562/oz.