Too soon to call the end of the bull market in gold

The recent weakness of the gold price largely reflects the return of a degree of confidence in the US dollar, which has more than offset persistent worries about the sovereign debt crisis in the euro-zone. Nonetheless, we continue to expect gold to outperform major currencies if, or when, the euro breaks apart. This is the basis for our forecast that the price of the precious metal, currently just below $1,700 per ounce, will jump as far as $2,500 by the end of 2013.