(Reuters) - Goldman Sachs has raised its gold price forecasts citing the fall in U.S. real rates and intensifying sovereign debt issues in both the United States and Europe.
"We expect gold prices to continue to climb in 2011 given the current low level of US real interest rates," the Wall Street bank said in a note to clients on Monday.
The investment bank raised its three-month gold price forecasts to $1,645 per troy-ounce, from $1,565 per troy-ounce.
It also upped its six-month and 12-month forecasts to $1,730 per troy-ounce and $1,860 per troy-ounce, respectively.
Goldman also said it recommended initiating a long COMEX December 2011 position.
(Reporting by Soma Das in Bangalore; Editing by Sugita Katyal)
