"I think that we are going to see at least $1, 800/oz," Florida-based Weiss Research analyst Sean Brodrick said in an interview.
"That will not surprise me at all - we might see it spike much higher than that, but that won't hold up for long."
Bullion prices have climbed by nearly one third to new records above $1, 420/oz this year, as investors lose faith in the value of the US dollar and the Euro, and seek to preserve their wealth by holding the precious metal.
Analysts at BMO Capital Markets are also bullish on the prospects for the precious metals next year.
"After a very strong rally over the last three months, gold and silver are projected to be star performers into 2011," Bart Melek, David Haughton and Andrew Kaip wrote in a research note published this week.
"The end to producer hedging, as the last of producers unwind their hedge book, central bank net gold buying after 22 years of disposals, and concerns that excessive US and European government debt may lead to future monetisation (debasement) are additional key drivers for the very positive precious metals price outlook," they said.
Brodrick said that bullion purchases by central banks were also likely positive factors for the price of the yellow metal.
"We will keep hearing things like 'oh no we don't want to buy gold', but six months later you will see they bought lots of gold," he said. Brodrick predicted that China's central bank, in particular would make large purchases of gold either next year or in 2012, as a hedge against the US securities it holds.
BMO raised its gold price forecast for 2011 by $100/oz to $1 450/oz.
Not everyone is as bullish, however.
Kitco senior analyst Jon Nadler said that gold had been supported by massive inflows into exchange-traded funds for the metal, and any exit from these funds could end in tears.
"This is a question of when and not if. The unravelling will come," he told Mining Weekly Online.
He said that extreme volatility meant that Kitco was predicting gold would trade between $980/oz and $1, 480/oz next year. Threats to the price of the metal included the West raising interest rates, making cash a more attractive investment. Any major investors in physical gold meeting particular investment objectives, and deciding to sell could also push prices lower, said Nadler.
Finally, the possibility of China overshooting its economic cooling objectives could knock commodity prices, which would drag down gold prices, as happened at the end of 2008. Comparing the emerging economic powerhouse to a battleship, Nadler said: "Once you've started this thing you don't stop it on a dime, and it leaves a big wake."
"My sell by date for gold is inside of 2011," he remarked.
"I'm much more excited about PGMs than gold and silver."
Still, Nadler is sticking by his view that gold should make up 10% of every portfolio, as a life insurance policy against the global economy going belly up.
He maintained that this was regardless of what the price of the yellow metal was.
Melek, Haughton and Kaip pointed out that gold still made up a small part of global investments, and "even a modest shift from the much, much larger fixed income and equity markets could create a severe relative scarcity and much higher gold prices".
"Under such possible circumstances, an annual average price of $1, 700/oz is possible next year, with intraday highs possibly hitting the US$2, 000/oz mark," the analysts said.
BMO predicted that gold's 'poor cousin', silver, would be a particularly stellar performer in 2011.
"Silver's industrial nature, which is responsible for very strong demand growth, and limited supply growth are likely to propel the metal to top performer status next year, outdoing gold and most other metals," the analysts wrote.
The Canadian bank forecast a 30-million oz deficit in 2011, with prices averaging at $28/oz. That's 21% higher than BMO's previous forecast. Silver holdings in exchange traded funds climbed by 11,13 t to 15 020 t on Thursday, the highest since February, analysts at Fairfax said in a note on Friday last week. "If we have another major financial crisis, people will sell their gold to cover their bad bets, then will see it go down much lower,"
