Gold price could hit $1,300/oz in 2011-BMO Capital Markets

September 8th, 2009. Published under News. No Comments.

BMO Capital Markets asserts the market has become quite divided on the outlook for gold and gold stocks with no clear consensus on the gold outlook.

Author: Dorothy Kosich
Posted:  Monday , 07 Sep 2009 

RENO, NV - 

BMO Capital Markets suggests the bear case could see the gold price retreating to US$750/oz in 2010 while the bull case hints the price could reach US$1,300/oz in 2011.

In a recently published report, BMO analysts David Haughton, Andrew Breichmanas and Bart Melek advised silver could outperform in a bull case gold scenario perhaps reaching $22.03 next year.  In a bear case, silver could be as low as $11.45/oz in 2010.

While the analysts expressed concern disinflation and a firm dollar could keep gold range-bound well into 2010, they advise, “The metal will likely be energized again late in 2010 amid a weakening greenback and rising inflation concerns, as the U.S. economic recovery takes root and as post-recession growth becomes entrenched. At that time, risk taking should accelerate and with it BMO Research expects a weaker dollar as capital increasingly moves away from the safety of the treasury market.” (more…)

gold edges toward $1,000

September 7th, 2009. Published under News. No Comments.

Ines Schumacher | Fri, 04 Sep 2009 10:11
[miningmx.com] — ANALYSTS expect the gold price to push through the magical $1,000/oz soon, but they fear the move is driven by short-term factors and is not sustainable in the long-term.

Gold is currently hovering just below the $1,000/oz barrier at $987/oz in early morning trade. It managed to reach $991/oz on Thursday.

“Gold will quite likely breach $1,000/oz if not today in the next few weeks,” CEO of metals consultancy firm GFMS Paul Walker said.

He said it would be extremely challenging for the gold price to remain over this psychological hurdle since it is currently being driven by short-term investment flows. (more…)

Traders positive about another move to $1000

July 23rd, 2009. Published under News. No Comments.

TOKYO (REUTERS) - 

 Gold steadied above $950 per ounce on Thursday as the dollar stayed near a seven-week low against a basket of currencies marked the previous day, maintaining bullion’s allure as an alternative asset.

Earlier this month economic worries encouraged investors to buy the dollar and U.S. Treasuries instead of gold, dragging the precious metal’s prices down toward $900.

Now with signs of economic stability, market players’ appetite for other assets including gold and equities is returning, traders said.

“Investors have a feeling that equity markets are on course for a recovery from recent lows… They are less risk-averse than before,” said Dick Poon, manager of precious metals at Heraeus Ltd in Hong Kong.

“Now that they are buying stocks again, their focus is back on commodities markets as well,” he said.

Spot gold was at $952.50 an ounce at 11:22 p.m. EDT, up 0.2% from the notional New York close of $950.40 on Wednesday. (more…)

The Gold Rush: Don’t Get Burned

February 26th, 2009. Published under News. No Comments.

With the yellow metal near $1,000 per ounce, investors are clamoring for coins and bullion. But buying gold in its physical form can be tricky

By David Bogoslaw

If you had any doubt that the prime motivation for investors has shifted from greed to fear, look at the price of gold. The spot price for the yellow metal reached $992.43 an ounce on Feb. 20, its highest level since hitting $1,002.70 on Mar. 17, 2008, the day that Bear Stearns collapsed. The spot price has climbed more than 39% from a near-term low of $712.30 on Nov. 12, 2008.

Demand for physical gold has exploded as the deepening financial crisis and ongoing slide in stock prices has pushed nervous investors into safe-haven investments. But new investors need to be careful about who they buy from, since inexperienced people seeking to take advantage of opportunities in the market are opening coin dealerships without being aware of the financial risks or legal compliance issues involved. (more…)