Gold prices will climb to $1,875 per troy ounce this month -- an 11.2 percent gain in the next four weeks -- and to a 2012 average of $2,000, Barclays Capital Research said Monday in a report.
The British group cited a positive macro environment as boosting gold's price. Specifically, it noted the inability of Congress' super committee to agree on deficit reductions and the inability of Eurozone leaders to stop sovereign debt contagion from hitting Italy and even France.
Australia's Firmiston Open Pit, also known as "Super Pit," is the nation's largest open pit mine. It's jointly owned by Barrick Gold and Newmont Mining.
Further, growing investor interest has boosted total gold holdings of exchange-traded products to a record 2,273.5 metric tons in the year to last week.
Central banks continue as net purchases of the metal.
Gold prices appear to be carving out a solid base for the next rally, Barclays said.
"Gold is trying to build a base near $1,665, the daily cloud base and range lows," the bank said. "We are bullish and look to buy against the $1,600 area. A break above resistance near $1,736 would confirm our view and open our targets near $1,803 and then the $1,840 area."
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