Tags: Nenner | gold | price | stocks

Strategist Nenner: Charts Indicate Gold Will Soar to $2,500

By    |   Tuesday, 26 Jun 2012 11:37 AM

The bull market for gold will ultimately resume and push the precious metal to $2,500 an ounce, says independent strategist Charles Nenner.

He focuses on technical factors – chart patterns – to produce his forecasts. Gold has dropped 18 percent, to $1,570, from its record high of $1,924 last September.

Nenner expects the downward move to continue through the end of August or into September, likely to $1,375. “But I think it will go much higher later in the year,” he tells Yahoo.

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As for stocks, Nenner expects them to bottom next week, with the Standard & Poor’s 500 Index descending to 1,280 and perhaps beyond.

Then stocks should rise about 6 percent, powered by a similar increase in earnings, Nenner says.

He forecasts stocks will stay in trading bands of about 5 percent for the next two years.

When it comes to bonds, Nenner is a big bear.

“First people lost their shirts on the stock market, then the gold market," he says. "I'm afraid that now they're going to lose a lot of money on their bond positions."

There is no way interest rates will stay near record lows, Nenner says.

Getting back to gold, some experts don’t see a major trend for the metal now.

"Gold is capped on the upside by disappointment [that the Federal Reserve isn’t easing more,] while on the downside, we have some bargain hunting," Societe Generale analyst Robin Bhar tells Reuters.

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