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CEO Says Fundamentals Can Drive "Huge" Rise in Gold Price

Release Date: 
Monday, December 24, 2012

The price of gold rose today in thin trading prior to the Christmas holiday.  Gold was $3.70 higher at 7:13 a.m. Pacific Time on the New York Spot Market, trading at $1,661.70 per ounce.  Spot silver was 0.12 higher at $30.18 per ounce.  (Click here for the most current spot prices.)

Andrew Su, CEO of Compass Global Markets, believes gold will continue to rally to new highs early next year.  “I think in the next quarter $1,900 is very likely, and we’ll see a new historic high early next year, sometime in February or March,” he said.

“Precious metals this year have been highly reactive to only one thing, and that’s expectations of further monetary stimulus from the Federal Reserve, and I think that will continue next year, so I think precious metals are going to bounce from the current levels to have a late-year rally…At the moment….I think we’ll see [gold] rally regardless of what happens in relation to the fiscal cliff,” Mr. Su said.

"We have a positive view of precious metals prices in the first half of 2013 on the basis of further money accommodation and a rebound in economic growth," said BNP Paribas in a report.

(Sources:  “PRECIOUS-Gold firms, U.S. fiscal fears drag,” Reuters, December 24, 2012; “Gold: Best of Both Worlds?CNBC, December 23, 2012; “Why One Gold Bull Thinks the Sell-Off Won't Last,” CNBC, December 22, 2012)

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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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