Tags: gold | traders | rally | over

Gold Traders: Ignore Goldman, 12-Year Rally Isn’t Over

Thursday, 06 Dec 2012 09:17 AM

By Dan Weil

Share:
A    A   |
   Email Us   |
   Print   |
   Forward Article  |
  Copy Shortlink
While Goldman Sachs cut its gold price target Wednesday and said the precious metal’s bull run will likely end next year, some traders say the 12-year rally still has room to roll.

Goldman Sachs analysts say economic recovery and rising real interest rates will counteract the Federal Reserve’s quantitative easing to stifle gold’s ascent.

The firm cut its three-month price target to $1,825 an ounce from $1,840, the six-month target to $1,825 from $1,940 and the 12-month target to $1,800 from $1,940.

Editor's Note: Get David Skarica's Gold Stock Adviser — Click Here Now!

Spot gold traded at $1,693.65 late Wednesday.

Anthony Grisanti, founder and president of GRZ Energy, doesn’t see gold reversing its ascent. “I think with [quantitative easing] still going on next year and no call for it to end, gold will go higher," he tells CNBC

Rich Ilczyszyn, founder of iiTrader, sees another source of support for the metal. "We still have all kinds of geopolitical risk,” he tells CNBC. Investors’ preoccupation with the U.S. fiscal cliff is blinding them to problems elsewhere, Ilczyszyn says.

And the fiscal cliff might help gold in any case.

Following its drop to a one-month low Wednesday, Miguel Perez-Santalla, vice president of gold dealer BullionVault, told Reuters, "There is some heavy selling by fund investors and leveraged money, but physical gold demand should benefit in the long run from the fiscal cliff after these short-term fluctuations."

Editor's Note: Get David Skarica's Gold Stock Adviser — Click Here Now!

© 2014 Moneynews. All rights reserved.

Share:
   Email Us   |
   Print   |
   Forward Article  |
  Copy Shortlink
Around the Web
Join the Newsmax Community
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
You May Also Like
Around the Web

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved