TW-International: Gold price outlook pushed up by Citigroup as global economic worries mount.

Aug. 22, 2011 - PRLog -- Fears of a double-dip U.S. recession after the S&P recently downgraded the country's sovereign debt and the euro zone's debt crisis have increased investor appetite for gold, Citigroup informed TW-International, which encouraged the brokerage to raise its outlook on near-term gold prices.

Spot gold recently hit a record high above $1,878 an ounce, after staging its biggest weekly gain in two and a half years last week. U.S. gold climbed 1.6% to a record high of $1,881.9 on August 22nd.

"Increased global risk, U.S. dollar weakness, growing inflationary fears, the U.S. debt downgrade and the continuing sovereign debt risks in Europe have increased investor appetite for gold, triggering recent price strength," Citigroup said in an investor note available to TW-International.

Cititgroup now sees gold prices of $1,650 per ounce for 2012 and $1,500 per ounce for 2013. Its earlier forecast had the metal at $1,325 per ounce for 2012 and $1,225 per ounce for 2013.

Citigroup increased its rating on Petropavlovsk citing the London-listed Russian miner's near-term growth profile through a production ramp-up at its Pioneer mine and new mines Malomir and Albyn in Russia.

The brokerage also raised its price target on other UK-listed gold miners such as Randgold Resources , Centamin Egypt , European Goldfields and African Barrick Gold , a unit of the world's largest gold producer Barrick Gold Corp .

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