GOLD PRICES REVERSE, HEAD HIGHER

by Goldline.com | July 22, 2010

Gold prices erased early losses on the New York Spot Market Thursday and headed higher. Bargain-buyers bought gold on the dip and traders digested the last day of Federal Reserve Chairman Ben Bernanke’s comments to Congress on the state of the economy. Bernanke’s statements hinted at the possibility of deflation which, some believe, will give gold prices a strong boost over the long term. "Deflation, like inflation, means a crisis in money, and gold is always well-bid amidst monetary instability, let alone fear," argued Adrian Ash, head of research at BullionVault.com. (The Street, 7/22/10)

Stocks rallied on the New York Stock Exchange on better-than-expected earnings and forecasts from 3M, Caterpillar, AT&T and UPS, which helped reassure investors about the pace of the economic recovery. Stocks plunged on Wednesday after Federal Reserve Chairman Ben Bernanke’s comments to Congress sounded a cautious tone on the economic recovery, but the mood was more positive Thursday with investors buying riskier stocks. (CNN Money, 7/22/10)

Gold “can bounce to top $3,000”, according to Joe Foster of US based Van Eck Associates. “We are positioned for a bull market,” Foster told investors this week. “This bull market has been going on for nine years and it could very well go on for another nine years.” Further, economic problems are not going away any time soon, he said, and continuing financial stress will be a long-term driver for gold. (Citywire, 7/22/10)

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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..."