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Mining Analyst - Gold Bull Market Through 2014

Release Date: 
Monday, April 30, 2012

Upcoming elections in France and Greece and a European Central Bank meeting later this week boosted the dollar. Gold prices were modestly lower trading at $1658.50 per ounce at 7:40 AM Pacific Time on the New York Spot Market with silver at $30.91 per ounce.

Warren Gilman, mining industry analyst and Chairman & CEO of CEF Holdings, expects that U.S. monetary policy and central bank buying may drive the gold bull market through 2014. "I think we have to take a look at the broader overview," he said. "That is, we have an environment of negative real interest rates on a global basis. We have a group of central banks around the world that are long U.S. dollars and are trying to diversify away their holdings and get a little bit broader exposure to a variety of currencies, including gold. With that environment, I think inevitably gold prices are going to stay strong."

"If you are a gold bull, then you really have to be a silver bull," Gilman said. "When gold moves, silver, historically, moves even further." The analyst noted, "if you believe the trend is up, you’ve got to be a buyer of silver at these levels."

Analysts at Barclays said in a note that the bank is bullish on gold from a technical standpoint. They see gold prices in the area of $1,700 to $1,717 per ounce in the near future, the bank said.

(Source: "PRECIOUS METALS: Gold Slightly Higher In Asia; Thin Holiday Trading," Wall Street Journal, April 30, 2012; "PRECIOUS-Gold slides towards $1,650/oz as dollar strengthens," Reuters, April 30, 2012; "Gold Bulls Should Buy Silver," CNBC, April 26, 2012)

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