The most accurate forecasters say gold will rebound from its biggest monthly plunge since 2008 and reach a record by March because economic growth is stagnating and Europe's debt crisis is unresolved.

Futures traded in New York may rise 13 percent to $1,950 an ounce by the end of the first quarter, according to the median of estimates compiled by Bloomberg. The predictions are from eight of the top 10 analysts tracked by Bloomberg over the past eight quarters. Two declined to give forecasts.

Holdings in exchange-traded products backed by bullion rose the most in three months in October, and the most-widely held option gives owners the right to buy gold at $2,000 by Nov. 22. Demand for the metal accelerated since May as slowing growth and mounting concern that European leaders will fail to contain the region's debt crisis caused $7.5 trillion to be erased from the value of global equities.

"There is a loss of trust in the entire financial system and urgent need for safe-haven investment," said Ronald Stoeferle at Erste Group Bank AG in Vienna, the second most- accurate forecaster in the past three months. "The environment for gold is just perfect."

ETP holdings expanded 1 percent to 2,271.2 metric tons last month, a pile now valued at $126.6 billion and greater than the reserves of all but four central banks, data compiled by Bloomberg show. Bullion bought for investment accounted for 38 percent of total demand in 2010, compared with about 4 percent a decade earlier, the London-based World Gold Council estimates.

David Fuller's view I have no trouble envisaging gold at $2000 by March 2012, although this may require that stock markets remain reasonably steady, which would also not surprise me.

Extremely low interest rates in the west and money printing by central banks remain tailwinds for the more attractive stock markets and especially for gold bullion, given its secular bull market.

Although gold ran ahead of schedule with its August surge, this is usually a bullish period for bullion, given the Indian wedding season, Christmas and Chinese New Year buying. However, in recent years investment demand has been the main driver of gold's advance. Consequently, investor sentiment will remain the key influence for gold bullion's price trend over the foreseeable future.

Some lateral trading is evident near $1700 (weekly & daily) and gold appears to be consolidating above that level within the current support building phase. It has also regained approximately half of the decline since its accelerated peaks in late August and early September.

Consequently, a close beneath $1680 would now be required to delay the current outlook for further gains. A clear breach of the rising 200-day MA, which appears unlikely at this time, would be required to seriously question higher scope in coming months.

(See also further comments on gold in the section: "My personal portfolio", below.)