Closing Gold & Silver Market Report – 9/18/2012
BANK SAYS GOLD COULD REACH $2,400 PER OUNCE IN 2014
Gold has recovered from earlier losses, Silver added to gains, and Platinum and Palladium continued to dip in afternoon trading today. The latter two metals are being pushed down by the end of the sometimes violent strike of miners in South Africa. Bank of America Merrill Lynch said in a note, “Given the new open-ended nature of QE3, the upward pressure on Gold prices should continue until employment is strong enough to warrant a change in policy. In our view, this is unlikely to happen until the end of 2014.” The firm then predicted that by the end of 2014, Gold could see a record high of $2,400 per ounce.
John Stephenson of First Asset Investment Management Inc in Toronto explained this a little more, saying that “People will see commodities as something they want to hold, because they see these moves as inflationary. It’s hugely bullish in the short run, now that all of the central banks seem to be singing from the same hymnal.” said Jack Ablin of BMO Private Bank in Chicago. “The Fed statement does change things. It really shows the Fed’s unwavering desire to inflate asset prices, and commodities will certainly be part of that.”
At 5 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,772.90, Up $3.30.
- Silver, $34.86, Up $0.49.
- Platinum, $1,632.50, Down $41.10.
- Palladium, $666.80, Down $22.40.
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