the movement of gold prices over the past three to five years

First and foremost if you wish to reasonably accurately go in for gold price prediction then you should have a close look at the movement of gold prices over the past three to five years. Going by this record it is quite normal for us to understand that of all the precious metals and commodities that are aggressively traded, the price of gold is something that has grown up on an average of 20% each year. These is amazing and even the best of stocks and shares cannot match this performance. Further it is also fact that the price of gold is also dependent on the global and local economic scenario around the world. Here it would not be wrong to point out that the current problems that are being faced by the Euro Zone countries could push up the demand for this yellow metal as countries scurry for cover for hedging against economic and financial uncertainties.

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The Bloomberg Link Precious Metals Conference was held in New York yesterday and fourteen attendees responded to a survey issued at the event. Based on the average of their responses, prices for golden bullion may increase to $1,897 per ounce by Dec. 31 in New York. At the end of last year, the price stood at $1,566.80 per ounce. The European debt crisis, slowed economic growth in China, and low interest rates around the globe are increasing demand.

For three consecutive years, central banks have been net purchasers of the precious metal. According to data from the World Gold Council, this is the longest net buying trend for the institutions since 1973. DundeeWealth Inc. chief economist Martin Murenbeeld believes that insecurity regarding whether the euro will exist in coming years is responsible for the recent golden purchases by central banks.

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Many investors are starting to realise how the debt crisis in the euro zone is spilling over and affecting the U.S. and many other countries now. The bailouts are not working, and that is getting more people talking about gold and silver in the last several months. No matter how bleak the world looks, historically if you look back, gold and silver has always done particularly well during recessions and depressions. This is more proof and giving gold even more of a catalyst for prices to continue higher in the coming years.

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Further when you talk about the gold price prediction retail and small investor consumption pattern is also very important. Here it would be pertinent to point out that the demand for gold in the emerging economies like China, India, Brazil and other such countries is quite robust to say the least and this could play a big role in pushing up the prices of gold over the next few months. It would not be wrong to point out that the price may even scale $2,250 per ounce within the next five to six months.

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