GOLD IN A RISING TREND
Gold is down $5 and silver is down $.14 in early trading. Overnight gold broke below $1,000 an ounce, testing whether $1,000 would provide support. It dipped as low as $994.40 on the December contract. However, that contract is now back above $1,000 trading at $1,002 an ounce. If gold holds this test, it will likely make another move to the upside. Gold testing lower in reaction to a stronger dollar and lower oil, with the dollar up 12 basis points and oil down $.34. Equities are down 45 points on the Dow.
The Obama administration imposed tariffs on the import of Chinese tires saying they violated the World Trade Organization rules. China responded by considering tariffs on imports of U.S. produced chicken and autos. Is this the beginning of a trade war? No one knows. At this point it seems as though the Obama administration has fired a shot across the bow of the Chinese. Whether this grows into a trade war remains to be seen. Fear of a trade war is the factor that caused the dollar to rise. These are all issues that will not go away anytime soon. They are processes that will take some time to resolve. Similarly, the dollar is in a longer-term declining trend. That too will take time to resolve.
In the mean time, gold is in a very well defined rising trend. Gold is rising not only in terms of dollars, but also in terms of all major currencies. This again is a significant development that will continue to be a driver of the gold market. Investors would be well advised to utilize today's correction as an opportunity to get into the gold market ata bargain price. Gold and silver remain attractive at these levels. Having broken out above $1,000, it is likely that gold will at the minimum test $1,032 and more likely rise to $1,100 near-term. That does not rule out the possibility of some further correction. However, the path of least resistance for gold is upward according to the analysts at the major banks and brokerage firms. They remain unabashedly bullish on gold. Remember, Merrill Lynch is targeting $1,500, Barclay's Bank says we will see $1,100 this month and many other banks have similar views and opinions for precious metals.
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Investors should ask Goldline to explain the features, benefits and cost structure of the various gold and silver investments that are available. Select those that best meet your own personal and individual investing needs and objectives. Investors looking for low transaction costs may wish to consider bullion assets such as American Eagles, Swiss 20 Francs, Krugerrands, Canadian Maple Leafs, Silver Bags or Silver Bars. However, the Price Guarantee Program is not available with these assets.
If you would like to take advantage of the Price Guarantee Program, which provides you with a two-week window of opportunity in which to re-price your order in the event of a correction, you must select assets with some collectible value such as 20 Francs, Double Eagles and Silver Dollars. Call Goldline at 1-877-341-2646 for further information on the Price Guarantee Program.
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†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..."
