Tags: Suttmeier | gold | 3000 | secular

BofA Analyst: Gold Could Hit $3,000 an Ounce

Thursday, 27 Sep 2012 08:18 AM

Bank of America Merrill Lynch is officially forecasting gold prices to hit $2,400 an ounce, according to its latest forecasts, but one analyst at the bank says prices could climb even higher to around $3,000.

Gold is currently trading just shy of $1,750 an ounce and has been gaining on the coattails of central bank stimulus measures, in the United States especially, which weaken paper currencies to spur growth and make hard assets like gold attractive hedges.

“We remain secular bulls on gold. Key chart and uptrend supports between $1,600 and $1,400 have held and we have viewed $1,550-1,500 as a good area to buy gold,” BofA Merrill Lynch analyst Stephen Suttmeier wrote in a note to clients, according to Business Insider.

Editor's Note:
I Wish I Were Wrong — Economist Laments Being Right. See Interview.

“[T]he secular bull market for gold points to a stronger rally to $2,050-$2,300 and up to $3,000 longer term. The top of the rising channel from mid-2005 is near $2,375 and reaches the $3,000 area by early 2014.”

The Federal Reserve recently announced plans to pump liquidity into the U.S. financial system via buying $40 billion in mortgage-backed securities from banks a month on an open-ended basis, a monetary policy tool known as quantitative easing that aims to speed up recovery.

The European Central Bank, the Bank of England and the Bank of Japan have announce similar measures, while the People’s Bank of China has said it will consider cutting interest rates and banking reserve requirements.

Such policies often stoke fears of rising inflation rates, under which gold shines.

“Gold is rising on all the announcements we have heard from various central banks,” Fred Schoenstein, a trader at Heraeus Precious Metals Management in New York, told Bloomberg.

“The trend remains bullish.”

Editor's Note:
I Wish I Were Wrong — Economist Laments Being Right. See Interview.

© 2017 Newsmax Finance. All rights reserved.

   
1Like our page
2Share
StreetTalk
Bank of America Merrill Lynch is officially forecasting gold prices to hit $2,400 an ounce, according to its latest forecasts, but one analyst at the bank says prices could climb even higher to around $3,000.
Suttmeier,gold,3000,secular
309
2012-18-27
Thursday, 27 Sep 2012 08:18 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

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