GOLD MAY REACH $2,000 IN ‘NEAR FUTURE’
Gold prices are rallying on the New York Spot Market as hopes emerged that a stronger fiscal union between the 17 nations in the Eurozone would stem the debt crisis and save the euro. According to The Street, “Reportedly Eurozone nations led by German Chancellor Merkel and French President Sarkozy are in talks to create more fiscal unity among those countries on the euro -- that is the austerity measures already agreed to would be enforced by the Eurozone. Countries would, in essence, give up some sovereignty to save the euro.” Investors hope this in turn would encourage the European Central Bank to purchase more sovereign bonds for an extended period of time, effectively becoming the lender of last resort. (The Street, 11/28/11)
U.S. stocks are higher in morning trading with the Dow surging over 300 points as of 11:01 a.m. EST. Optimism over reported progress in the Eurozone and strong Black Friday sales spurred all three indices higher. U.S. retailers reported record sales of $52.4 billion over the Black Friday weekend, a 16% increase from 2010 sales. A warning from Moody’s that the European Debt Crisis could lead to a downgrade of the region’s sovereign debt did little to dampen investor sentiment. (CNN Money, 11/28/11)
Ned Naylor-Leyland, investment director at Cheviot Asset Management, says gold prices will reach $2,000 an ounce in the ‘near future,’ but says volatility in the market will remain. “We’re up 25% for the year despite some pretty big moves in both directions. I suppose the issue is: what are the fundamentals driving the market and what will win,” he said in an interview with Francine Lacqua on Bloomberg Television's "On the Move." Naylor-Leyland went on to say gold and silver
are currencies and that physical buying combined with lack of confidence in fiat currencies will continue to be bullish for precious metals. (Bloomberg, 11/28/11)
†This material has been prepared for private use. Although the information in this commentary has been obtained from sources believed to be reliable, Goldline does not guarantee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice.
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- S&P Capital IQ - Gold: $1,900 (in 2012) "Leo Larkin, metals and mining analyst at S&P Capital IQ, thinks that $1,900 gold might not be that much of a stretch [in 2012]. 'Gold has been ..."
- Citigroup - Gold: $2,300 - $2,400 (by end of 2012) "While we remain cautious on Gold in the near term...we continue to believe that the bull market remains intact...we believe that 2012 may be..."
- Leeb Capital Management - Gold: $2,500 - $3,000 (in 2012) "I'll give you my target for gold at the end of 2012, it's going to be trading somewhere between $2,500 and $3,000. This..."
- Global Hunter Securities - Gold: $1,800 (in 2012) "'What I am looking for is a gold price of $1,800 an ounce in 2012,' says Jeffrey Wright, senior research analyst at Global Hunter..."
- US Global Investors - Gold: $3,600 (by 2017) "'People get so caught up with the next three minutes for gold and they should really be focused on the next three years,' says Frank Holmes, ..."
- Goldman Sachs - Gold: over $1,900 (in 2012) "Wall Street investment bank Goldman Sachs predicts that gold's bull run will continue into 2012 with a low interest rate environment and..."
- CNBC - Gold: $2,400 (no period given) "Gold will top $2,400 an ounce. The long-term bull market in gold marches on. Gold won't make a straight shot to a new inflation-adjusted high. As long..."
- Nomura - Gold: $2,000 (by end of 2012) "Nomura has raised its forecast for gold prices to $2,000 an ounce by the end of 2012, from $1,800 earlier. The brokerage said the low-interest rate..."
- Morgan Stanley - Gold: $2,200 (in first half of 2012) "Gold will lead a rally in commodities in 2012 as Europe's sovereign-debt crisis continues to roil financial markets, spurring demand for ..."
- UBS - Gold: $2,050 average in 2012 "[Gold] remains one of the top commodity picks for 2012 as 'most of the factors that pushed gold higher in 2011 are not going away,' according to UBS..."
- Bank of America Merrill Lynch - Gold: $2,150 - $2,200 (average in 2012) "From a technical perspective we believe that the bull trend for gold remains intact… with gold having not yet met any of..."
- TheStreet.com - Gold: $2,500 (by May 2013) "I want to own gold here. I think gold is going to $2,500 eighteen months from now... Gold has been up for ten straight years and this going to be the..."
