Tags: Ilczyszyn | gold | 1 | 700 | next

Next Stop for Gold: $1,700, Says Strategist Ilczyszyn

By Dan Weil   |   Thursday, 07 Jun 2012 08:29 AM

As long as gold can maintain its support at $1,525 an ounce, further gains should be forthcoming, says Rich Ilczyszyn, founder of iiTrader.com.

What’s the best strategy now? "You buy gold,” he tells Yahoo.

The precious metal’s 15 percent correction from last September’s high of $1,924 creates a great opportunity to purchase it at a “discount,” Ilczyszyn says.

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“You stay long above $1,525. Every time we get to that level, we see big buyers — perhaps central banks — adding to their coffers of physical gold. That's giving you that nice base.”

To be sure, if gold drops below $1,500, abandon ship, Ilczyszyn says. But he doesn’t anticipate that.

He sees a good chance that the Federal Reserve will implement another round of quantitative easing (QE). “If we do get some type of QE, the dollar drops and gold is off to the races,” Ilczyszyn says.

“If we stay above $1,600, we have a clear shot to $1,700.”

Other investors are looking for more than that. Goldman Sachs predicts a price of $1,940 in 12 months. Barclays sees an average of $1,790 in the fourth quarter, and Morgan Stanley expects $2,000 then, Bloomberg reports.

“The $2,000 target has moved further away, but it still holds,” John Stephenson, a portfolio manager at First Asset Investment Management, tells the news service.

“We will see some easing, and that will push gold higher, but we are on hold until the Greece elections [June 17].”

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