GOLD TRADERS MOST BULLISH SINCE ‘04
Gold prices climbed higher on the New York Spot Market as continuing uncertainty regarding the Eurozone debt crisis sparked renewed safe haven buying. Standard Bank analyst Walter de Wet told Reuters, "The European Central Bank will have to create more money to assist the debt burden in Europe and that will be good for gold." Mr. de Wet expects prices to test $2,000 an ounce early next year. (Reuters, 11/11/11)
U.S. equities rallied after Greece took measures to resolve the country’s debt crisis and new austerity measures were passed by the Italian senate. Greece’s new prime minister, Lucas Papademos, a former banker and European Central Bank vice president, is working to form a new national unity government. "The small bounce back we're seeing is because there's a little hope that with new governments in Greece and Italy, we'll have more of an aggressive stance in putting austerity measures into place," said David Jones, chief market strategist at IG Markets. Jones remains cautiously optimistic with regards to Italy’s successful passage of new austerity measures. "This is important because it's the first vote in Italy on austerity cuts, but we still have to have a second vote next week, so for now it looks like it might just give us a day off from worrying about the crisis," said Jones. (CNN Money, 11/11/11)
Bloomberg reports this morning that gold traders are now the most bullish they’ve been since 2004, according to its most recent survey. The debt crisis of the Eurozone has increased demand as investors move funds into traditional safe-haven assets. According to the report, “Twenty-one of 22 surveyed by Bloomberg expect bullion to rise on the Comex in New York next week, the third consecutive increase and the highest proportion in data going back to April 2004.” The report goes on to state the median estimate of eight of the 10 most-accurate forecasters tracked by Bloomberg estimate gold will reach $1,950 in early 2012. (Bloomberg, 11/11/11)
†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..."
