Goldman (GS) Sees Gold Price Peak in 2012

Over the next three months, investment bank Goldman Sachs (NYSE:GS) said they see the price of gold rising to about $1,480 and jumping to about $1,690 over the next 12 months.

After that the giant bank said they see interest rates in the U.S. kicking in around that time, which should put downward pressure on prices.

Goldman said in a note, "Given the decline in U.S. real interest rates, we see the recent retracement in gold prices as offering a good buying opportunity, and maintain our long gold trading recommendation as we expect gold to rally to our three-month price target of $1,480 an ounce."

For the next 6 months Goldman sees gold prices rising to $1,565 an ounce.

"Optimism over the state of the global economic recovery at the start of the year, which drove U.S. real interest rates sharply higher, has been tempered by the ongoing events in the Middle East and North Africa and Japan...setting the stage for the next gold price rally," Goldman concluded.