The price of gold has made an encouraging start to the year, rising by around 6% so far in US dollar terms and outperforming most other assets. Admittedly, at around $1,655 per ounce, gold is still well below the peak of $1,920 seen last September, and there are significant risks in both directions. But on balance, we continue to forecast new highs in 2012 as demand for a safe haven from the crisis in the euro-zone provides a further boost.