Price of Gold at $1700

Most stock brokers wonder whether the gold may rise in price even more after the price of gold at $1700 surprised many analysts in Monday’s trading session. The European Central Bank and G7 tried to calm down the market that is driven by fears that European euro zone debt crisis is far from being resolved, while Standard & Poor credit rating agency downgraded U.S. sovereign debt on Friday, fueling expectations for continuing economic recession.

Price of Gold

The price of gold at $1700, however, was expected to rise after investors have bought more gold in July than in the entire period from start-2011, with gold price hitting all-time record-high at $1715 per ounce. In the past month, investors have bought 18 million ounces of gold, while in the first half of 2011 only 8.4 million ounces have been purchased.

According to Goldman Sachs, the price of gold at $1700 can be sustained over the next six months, while Goldman Sachs analysts forecast the price of gold would stand at between $1645 and $1860 in the next three to twelve months, respectively.

The gold nearly doubled its price in U.S. dollars since start-2009, growing by slightly over 3 percent on Monday, Associated Press reported. Analysts decline to forecast whether the price could break the 1980 record when an ounce of gold cost $2400 in today’s dollars. Will you continue to buy gold or will you sell?

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