Gold On Its Way to $2400 Per Ounce, Says BofA ML

Speaking at a presentation in New York, Francisco Blanch, head of commodities research for Bank of America Merrill Lynch, reiterated the bank's bullish call on gold. Analysts forecast gold prices will rise to $2000 in 2013, and by 2014 prices could reach $2400.

In a research note dated November 30th, Blanch said "Large-scale policy easing by the U.S. Federal Reserve and European Central Bank positions gold as a useful hedge against global macro and inflation risks."

Gold currently trades in a range between $1750 and $1675 per ounce, with strong overhead resistance noted at $1800, so BofA ML's call is far from a sure thing, and will likely hinge on prospects for future central bank actions meant to create liquidity in the U.S. and abroad.

SPDR Gold Shares ETF (NYSE: GLD) and iShares Gold Trust (NYSE: IAU) trade flat to slight lower intraday on Tuesday, in relatively quite markets.

iShares Silver Trust ETF (NYSE: SLV) declined 1 percent.

The spot rate of gold is 1$708 per ounce.

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