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Gold Likely to Rally to Near $2000 Plus

Thursday August 23, 2012 11:06

Well, it is clear to us that gold is ready to rally and test $2000 and soon. It will likely be over the months leading into the US election.

Let me explain

Gold is due for a major rally because even though the general commodity complex is in the tank and will continue to be, the flight to safety trade is on again. Not to mention that the governments around the world are trying to inflate things.

Well forget that. Deflation will win the day, but all the world governments will be inflating like mad in the coming years. The coming two years. But now the flight to safety trade is on big time. Big time.

Gold settled in the $1600 range, and we predicted it would hover between $1500 and $2000 almost a year ago in 2012. We feel that gold will now start testing and keeping the $2000 level in 2013.

Clearly, this will be resisted by central banks. But this is our newest projection.

The turmoil in the Mid-East is clearly spiking both gold and oil, I more focus on the gold, but the fear premium is back.

In 2013, we expect gold to break into the $2000 plus realm. Now one big caveat here is if there is a stock crash, we expect gold to challenge $1350 at the bottom of that crash if that appears. The general commodities will suffer sans food. Regardless, things like steel copper, coal. Oil, no because of the fear premium.

We also expect the USD to rally here. That is, unless a new QE is announced. In that case the USD will be flat.

Chris Laird

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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