HSBC - "We remain bullish on gold, and we expect prices to reach USD1,900/oz by year-end. The Federal Reserve’s third round of asset purchases via quantitative easing (QE3) - and other central banks’ policy easing measures are measurably boosting gold investment demand. For investors who expect QE3 will fail to jump-start economic growth, gold offers an attractive quality asset. For investors concerned about the inflationary impact of QE3, gold appeals as an inflation hedge.
Concerns about US fiscal issues in this election year and the likelihood of a weaker USD are additional factors supporting gold prices. Continuing central bank demand, which accounted for 456t in 2011and remains strong, may help boost prices this year and in 2013. (...) We are lowering our 2012 average forecast to USD1,700/oz in light of price weakness earlier this year. But we are raising our average price forecasts for 2013 and 2014 to USD1,850/oz and USD1,775/oz, respectively."