My opinion is that it's OK to continue to accumulate, or to start to do so, but don't go all in at these prices. Silver is a bit safer, and platinum is much more attractive right now.
Posted on 08/23/2011 7:37:33 AM PDT by markomalley
Gold prices rose above $1,900 an ounce on Tuesday as investors continued their flight to safety. Here's what analysts predict will happen to prices in the medium term.
UBS (on Aug 23)
UBS said it was lifting its one-month gold forecast to $1,950 from $1,725 previously, and its three-month price view to $2,100 from $1,850.
"We think gold has enough momentum currently to travel north of $2,000 before year-end, but we caution that some volatile price moves - both to the upside and the downside - lie ahead," it said in a note.
Societe Generale (Aug 22)
SocGen raised its average gold price forecast to $1,950 an ounce for the fourth quarter of 2011, pushing its 2011 annual average to $1,660 an ounce.
The bank also raised its 2012 forecasts to average $2,275 per ounce, and sees the metal trading around $2,500 an ounce in the fourth quarter of 2012.
"A combination of continued highly accommodative monetary policy, anemic growth, and continuing sovereign debt problems will continue to push gold to new highs," SocGen added.
(Excerpt) Read more at telegraph.co.uk ...
My personal estimate is at some point gold and the Dow Jones Industrial average will meet at about $3000.
There is apparently a hold point for the Dow at 5000 but my guess is Gold meets the Dow at 3000. Once you remove the all the financial foolishness of all the bubbletron market there isn’t much left.
If you can’t stand a ride back to $1750 without a stomach lurch, stay out of this commodity.
It will go higher, but it has some backfilling to do first.
ping
My opinion is that it's OK to continue to accumulate, or to start to do so, but don't go all in at these prices. Silver is a bit safer, and platinum is much more attractive right now.
My observations from the above chart are that when the price exceeded the 200dma by this much in 2006, it was then flat for a year before continuing a long rise. In 2008, it was followed by a “V” in price for more than a year, before continuing its rise.
In both instances, those who looked at the “overpriced” signal and kept on steadily buying did very nicely for themselves.
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