Alternative Outlook

Investors who have recently jumped on the gold bandwagon will need plenty of patience this year, as the anemic global economy and better prospects for the U.S. dollar combine to dim gold’s allure.

While buyers are likely to see their gold holdings rise in value for a 12th consecutive year, any advance is expected to be more modest than in recent years.

Muted returns from gold would test short-term traders. Yet those who own gold as a long-term answer to currency concerns and for portfolio diversification could find their patience is rewa…

Gold rose to fresh highs on Monday as more investors sought the safety of the precious metal to escape the threat of unresolved tensions in the global economy.

The price of gold hit $1,894.80 an ounce in early trading despite a bounce in European stock markets.

Jeremy Cook, chief economist at foreign exchange brokers, World First, said: “Gold is a rocket ship at the moment and there are many factors that make us expect further gains.

“Firstly, the global recovery has juddered to a halt and, with the obvious uncertainty surrounding …

BofA Merrill Lynch said an investment demand required to sustain gold prices in a range of $1,500-2,000 per ounce could be feasible in the next five years.

The brokerage believes investment has had a critical influence on the gold market and investor buying is the key to its long-run supply and demand balances.

“We look at supply and demand balances required to clear the gold market under three average price scenarios (i.e. $1,000/oz, $1,500/oz and $2,000/oz over the coming five years),” BoFA said in a note to clients.

The brokerage sa…