Can gold really reach $2,500? J.P. Morgan says yes

J.P. Morgan is expecting investor enthusiasm for gold to hold firm and drive the precious metal to $2,500 by the end of this year.

The group has upped its forecast from $1,800 following the US downgrade by S&P. It is expecting the record price of gold to soar as investors search for safe havens for their cash. The metal's price has already rocketed 18% in the last five weeks, breaking through the $1,700 barrier in the process, as investors duck for cover. It is currently trading around $1,776. J.P. Morgan's commodity analysts, Colin Fenton and Jonah Waxman, said: "Before the downgrade, our view was that cash gold could average $1,800 by year end. This view will likely now prove to be too conservative. "The mac...