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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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†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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