Gold Price Forecast For 2012: A Rise Seems Likely, But It's Not Guaranteed

Gold prices have been rising steeply since 2007, a climb that shows no sign of abating according to market analysts.

Why will gold prices continue to rise?

Firstly, gold has always been an inflation hedge in uncertain economic times. It is no coincidence that prices have risen so steeply since around the beginning of the global economic crisis, compounded by the 2011 European debt crisis. As long as the U.S. dollar is weak, investors are more likely to invest in tangible assets such as gold or silver. In addition, the political unrest in North Africa and now, Middle Eastern countries such as Saudi Arabia has had an upward effect on the price of gold.

Investors inevitably look for a secure investment amid such uncertainty and thus turn to gold. The steep climb of its stock prices' rises in recent years has undoubtedly been aided significantly by market reaction to the