GOLD TO REMAIN BULLISH

by Goldline.com | May 07, 2010

As of 12:45, EST gold prices were trading around the $1,200 an ounce mark on the New York Spot Market Friday, after a positive US jobs report and continuing fears over the European debt crisis. Silver was trading slightly higher at $18.36, up $0.67. Gold prices finally broke through $1,200 an ounce on Thursday as the violent Greece riots, which were televised, spooked investors. European Union nations were voting on their portions of the 110 billion euro bailout for the country with most people focusing on Germany, which is responsible for almost $29 billion. (The Street, 5/7/10)

Oil prices fell for the 4th straight day, following U.S. stocks, as investors remained bearish about Europe's prospects. Gasoline prices fell for the first day in five, dipping to $2.922 a gallon from $2.929 the day before, according to motorist group AAA. (CNN Money, 5/7/10)

Stocks continued their fall from Thursday as concerns over Greece and its potential long-term impact overshadowed a positive jobs report on Friday. As of 12:45, EST, the Dow Jones industrial average (INDU) lost 98 points, or 1%, after having gained as much as 59 points and lost as much as 279 points in the morning. The S&P 500 index (SPX) lost 9 points, or 0.7%. The Nasdaq composite (COMP) lost 29 points, or 1.3%.

The gold market is poised to continue its bullish trend according to Gluskin Sheff analyst David Rosenberg, who says the breakdown of the euro could ultimately drive the price of gold to $3,000. "The case for gold heading to $3,000 an ounce is getting stronger by the day," Rosenberg wrote in a note to investors. "Contagion risks" from the Greek financial crisis loom, "and there are simply not enough trees on the planet that can provide enough paper currency to backstop countries like Portugal and Spain." (Newsmax, 5/5/10)

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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..."