THE FUTURE WILL SHOW GOLD’S TRUE VALUE
Gold held on to price gains Monday. In a note, Credit Suisse explained how United States data ultimately affects the yellow metal. “Stronger economic data is a double-edged sword for Gold.” The note said the American dollar “tends to depreciate after good economic data due to reduced safe haven flows. That is positive for Gold.” Optimistic fiscal data, though, “means that there is a lower probability of further monetary easing, which is negative for Gold. We think the most likely outcome for this week is sideways trading.”
Jay Taylor, publisher of the Miningstocks.com website, shared his forecast for Gold’s price as Europe’s financial crisis resumes and affects economies worldwide. Taylor presumes one of two predicaments can happen, which are either hyperinflation or deflation. If hyperinflation occurs, he suggests Gold could surge to $10,000 per oz, and if deflation happens, then he predicts Gold could push its way to $2,000. Taylor said he believes the most important factor to consider about possible price hikes for Gold is what happens to prices in general, and Gold’s relationship to them. In a recent interview on Canada’s Business News Network, Taylor said, “Despite all the anti-Gold propaganda, there is no reason to doubt that we are in the bull market of a lifetime for both Gold and mining shares. Very soon we are going to see a dramatic increase in both the real and nominal price of Gold, and the Gold shares are going to break out, as well.”
At 5:06 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,611.80, Up $4.50.
- Silver, $27.95, Up $0.04.
- Platinum, $1,401.00, Down $14.40.
- Palladium, $581.20, Up $1.50.
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