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As other research desks talk of gold hitting $2,400 or even higher, Citi predicts $1,800/oz....
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Tuesday, September 25, 2012, 2:40 PM ETAs other research desks talk of gold hitting $2,400 or even higher, Citi predicts $1,800/oz. likely will be tested this quarter thanks to global central bank stimulus. The firm sees gradual economic improvement in 2013, "suggesting that sustained investor upside moves should be difficult to maintain." Citi ups its 2013 gold price forecast to $1,749, but note: The price is now $1,763.
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This news story has 10 comments:
Second, the last institutions I would rely upon for any truth about Gold is any Bank, especially the ones that hate its check on their crimes.
Third, Where will the money come for Growth, with high taxes, and high unemployment close to 20% in reality, not fake govt stats. As the idea taxes are not high enough is a subjective as it cab get.
Gold has been held artificially low so long and this was why Bretton Woods was defaulted on by Nixon, yes, the crook! The USA was losing so much gold because we were in trouble then. That is why Charles De Gaul Requested payment in GOLD not dollars, and other country's did also. Nixon closed the GOLD window and that is a DEFAULT!
lastly, Brazil, China, and Japan are already cutting out the dollar in trade and using Yen/Renmimbi and Renmimbi/Reals.
The USDA cannot pay it s debts.....let not look at just deficits as that is a Difference between Revenue minus Income(taxes) and that is NOT the debt, The debt is in the Trillion as politicians have promised too much and the devaluation of the dollar is the politically expedient way to cheat creditors by paying with future cheaper dollars.
This is the Feds Policy! The Fed is their to try and keep the Banks solvent and not any of the other mandates is the real goal. The rest are just "pabulum" for the masses.
Yes, you have to love these bold proclamations by entities such as Citibank like "gold might hit $xxxx per ounce by [such and such a date]..." - and the price is already there!
When we get a weekly close through both of those critical levels, we anticipate that will give us an acceleration which will take us up toward the targets on gold to the $2,055 area (see chart below), and silver back to the old highs near $50. However, on a longer-term basis we believe we have a setup here which suggests that gold could continue to go higher for some time to come.
The gold price would need to move above USD 1,880/oz to represent an all time high in real terms. However, versus physical and financial assets, gold prices would need to rise to much higher levels to be considered excessive. Figure 1 examines the level of the gold price that would be considered extreme against a selection of indicators. On the seven measures we track, gold would need to hit USD 2,390/oz to reduce the purchasing power of an average G7 consumer to its lowest level on record. Moreover the gold price would need to hit USD 2,960/oz to represent an excessive valuation versus the S&P 500.
( full article at http://bit.ly/MWC1hH )