Bank of America predicts $2,400 Gold Bullion by end of 2014

Gold prices will reach $2,400 a troy ounce by the end of 2014 on the Federal Reserve's third stimulus program, and aren't likely to drop below $1,500 amid support from consumers in emerging markets, analysts at Bank of America Merrill Lynch said. ...

"The Fed's announcement was on the aggressive side of expectations," analysts at BofA Merrill Lynch said in a report. "Given the new open-ended nature of QE3, the upward pressure on gold prices should continue until employment is strong enough to require a change in policy. In our view, this is unlikely to happen until the end of 2014," they said.

The bank introduced a 24-month gold price target of $2,400 a troy ounce in response to the Fed's easy-money efforts, which would signify a 36 percent jump in the metal's price. The new price target reflects expectations that the Fed will continue QE3 until the end of 2014, as well as extend Operation Twist beyond December 2012, the bank said.

BofA Merrill Lynch also reiterated its six-month price target of $2,000 a troy ounce.

Moreover, gold prices are unlikely to dip below a "floor" price level of $1,500 a troy ounce over the next decade amid supportive demand from buyers in emerging markets, BofA Merrill Lynch said. 

More information can be found online at http://www.goldbullionadvisors.com