GOLD PRICES CONTINUE TO CLIMB

by Goldline.com | May 06, 2010

Gold prices are back near five-month highs on Thursday despite continued gains in the dollar. Gold was trading at $1,193 an ounce, up over $17 from Wednesday's close. Silver prices are unchanged at $17.56. (New York Spot Market, 1:05pm, EST)

Gold and the dollar have recently de-coupled, which has been bullish for gold. "Growing sovereign risk is lifting our appetite for gold," said Morgan Stanley on Wednesday. "Although gold has already rallied, trading at its highest in 2010, and reaching nominal highs in euros, we see further upside from current levels."

Stocks are continuing to drop Thursday over worries of Europe's ongoing debt problems. The Dow Jones industrial average (INDU) lost 26 points, or 0.2% as of 11:00am, EST. The S&P 500 index (SPX) slipped 3 points, or 0.3%. The Nasdaq composite (COMP) dropped 4 points, or 0.2%.

Oil prices were trading in range with Wednesday's close, but gasoline prices continued their climb, rising 1 cent a gallon in the latest survey conducted for motorist group AAA. (NYSE)

Moody's released another report this morning, saying contagion could potentially spread to banking systems that have weakened from within, often due to excessive loan growth. Spain and Ireland and, to a lesser extent, the UK were all cited as potentially vulnerable.

In an exclusive interview with The Gold Report, Wednesday, gold analyst Bob Moriarty warned of a coming financial collapse and recommended investors protect their wealth by acquiring precious metals. "In the United States, every American now has an obligation of about $100,000 more now than they did 18 months ago because we've taken all these toxic assets away from the banks and put them on the backs of the taxpayers," he said. "Very, very bad things are coming, so prepare yourself to the extent you can. Own some gold; own some silver. That's going to be some protection." (Goldseek.com, "Bob Moriarty: Collapse as Certain as Time and the Tides," May 5, 2010)

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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..."