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Market Chatter: LBMA's Best Gold Forecaster Hochreiter Says Bull Market Over

Gold's 12-year bull market is over as U.S. economic growth means investors will switch focus to precious metals that benefit from expansion, the top forecaster in the London Bullion Market Association's 2012 poll said, Bloomberg reported.

Prices will average $1,600 an ounce this year, down from a record $1,668.75 last year, Rene Hochreiter, a director and chief executive officer of Johannesburg-based Allan Hochreiter (Pty) Ltd., said by phone last week. The high will be $1,700, below the record of $1,921.15 set in 2011, he said.

Hochreiter forecast an average $1,650 for gold last year. Silver, platinum and palladium exceeded gold's 7.1% gain last year.

Holdings in gold-backed exchange-traded products were at 2,623.2 metric tons on Jan. 4, 9.3 tons below the record set Dec. 20, data compiled by Bloomberg show. They rose 12% last year, compared with increases of 9.4% for silver products, 16% for platinum and 11% for palladium.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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