Why gold looks bullish for 2012
Gold may be bullish in 2012 as Central banks by and large are expected to maintain loose monetary policies, with scope for more aggressive balance sheet use in the US and Europe; negative real rates are positive for gold and they should persist through 2012 in the US. Investors will likely remain net gold buyers. Reserve diversification into gold is set to continue, for instance by central banks. Gold demand from countries like China looks set to increase.
Why Silver looks bullish for 2012
BofAML also forecast $37/oz for silver in 2013 while $30/oz for the moment. There is a good upside potential in 2012 silver prices because of continued interest in the metal. Silver fundamentals have been improving in recent years for a host of reasons, including increased demand from emerging markets, somewhat reduced drag from the photography sector and higher usage from new applications. This suggests that gradual increases of silver quotations were justified.
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