Deutche Bank Forecasts Gold to Average $1100 in Fourth Quarter
by Joe Battaglia
Posted: March 28, 2008
Gold and silver both sold off this morning in light trading. Gold down $19.00 and silver down $.58 in reaction to falling oil prices and a stronger dollar. The dollar is up 13 basis points at $71.79 and oil is down $1.75 at $105.73. The markets are showing increased volatility as gold and silver consolidate at these upper levels. Let us bear in mind that when gold was $400 an ounce a 2% correction was $8.00. At a thousand dollars an ounce it's $20. Therefore on a percentage basis, the corrections aren't all that much and they're indicative of consolidation and base building rather than an ending of the bull market.
This market remains quite bullish, the trend remains substantially upward and the consolidation is occurring at a high level. As I've said over the past nine years these high level consolidations are very constructive as they work off an over bought condition on the charts and enable the markets to build a base to launch to higher levels. With so much money coming into the metals markets from speculators, (so-called hot money), many are very short-term traders and look to take profits ahead of the end of each quarter. We are now at that point where profit taking is often experienced and analysts say that gold should hold above $925 an ounce. If it does not we could see further correction down towards $905. However, the odds favor the metals holding around today's levels and finishing out the quarter with substantial gains.
It's important to remember that no markets move up in a straight line. The precious metals markets have done excellent work posting gains of about 11% so far this year. If it remains on track at these levels we will probably see gains of 40% over the course of the year. Therefore, one should view these corrections as tremendous buying opportunities. Those who have been taking advantage of Goldline's price guarantee program may wish to re-price their orders today so they can obtain more gold for their investment dollars. With this program, which is available on assets that have some collectible value such as Swiss 20 Francs, investors can re-price their order at any time within 2 weeks of the date they make their transaction. Therefore, those who have utilized this program and whose 2-week time period may be expiring should re-price to the lower levels as early as possible today. I would not be surprised to see these markets rally back toward a more modest loss by the end of the day.
The Indian wedding season begins next month and will last for about 3 months. During that period of time there is very heavy demand for gold from India as gold is the traditional wedding gift. We almost always see the demand for gold surging during that time. Michael Jansen, an analyst with JP Morgan told Dow Jones Wire Service, "Gold might continue to consolidate before pushing higher, back through the $1,000 an ounce area." Ross Norman, also one of the best in the business, says that gold will push back above $1,000 within a few weeks and will be above $1250 by year end. These analysts are well respected and their opinion should be given significant weight. This is an opportunity to acquire gold and silver on the dip.
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. Those looking for low transaction costs may wish to consider bullion assets such as Krugerrands, Maple Leafs, Eagles, Silver Bags and Silver Bars. Those who would like to take advantage of Goldline's price guarantee program may wish to consider the Swiss 20 Franc Gold Coins. Acquire 29 of them and receive the 30th free. Silver investors may wish to consider Pre-1964 silver half dollars. Acquire $5,000 worth of them and receive free shipping. You can combine the two offers to receive free shipping and a free Swiss 20 Franc gold coin.
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