Report: Global woes a boon for gold prices

Global fiscal woes should translate into good times for gold prices, according to a research and consulting firm.

Thomson Reuters GFMS’ Gold Survey 2013 forecasts a price per ounce of more than $1,800 by the end of 2013, up 14.2 percent from Friday’s $1,575 close.

The company said a key factor in the run-up would be a “continued lack of confidence” in near-term resolution to the debate over U.S. budgets and debt spending. Plus, the Federal Reserve is unlikely to stop buying U.S. Treasurys from banks to pump money into the economy.

And a struggling eurozone, where investors are worried about potential inflation and watching Cyprus’ seizure of bank savings, means “significant potential for gold-friendly shocks,” the report said.