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$10,000 Gold

Monday April 29, 2013 08:38

I was asked what I thought of $10,000 gold.

I saw the headline but did not even open the article; let’s get through $1,528 first.

Private banking clients at Society Generale (SocGen) a prestigious and well respected institution must be scratching their heads. The banks commodity team is on record calling for gold to end the year under $1,400 but their global strategist has suggested a price of $10,000. Mr. Edwards adds that the S&P will also fall 70%, bottoming in the 450 range. Had I interviewed Mr. Edwards, I would have asked him, for purposes of full disclosure, what percentage of his portfolio was being held in gold. Everyone is entitled to their valued opinion, it’s what makes a market. Would love to see Mr. Edwards and Mr. Roubini go head to head. If anyone is planning a conference where this debate will be showcased, please remember my invitation.

On the question, “what do you think of $10,000 gold?”  Answer:  I don’t.

Gold broke through my first resistance level  yesterday of $1,455 and hit my second target overnight in Asia trading at $1,477. The market finally analyzed the relationship between the gold and silver price and pushed silver to a 6% gain during yesterday’s session. I’m raising the stop again to $1,454 this morning.  The market has backfilled the severe drop of two weeks ago and is now at a critical short term junction. Generally when a market drops as precipitously as gold did, the market tends to fill in the gaps and $1,477 represents the back-fill in my judgment.

 

By Peter Hug
Global Trading Director
Kitco Metals Inc.

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.

Week of April 22th, 2013

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