“Scope for Gold at $2400” as US Monetary Policy “Designed to Weaken the Dollar”
By: Ben Traynor
GoldSeek.com
Wednesday, 12 December 2012
London Gold Market Report
THE SPOT gold price climbed back above $1715 an ounce Wednesday morning, around ten Dollars up from last week’s close, as stocks, commodities and the Euro also edged higher and US Treasuries dipped, ahead of today’s Federal Reserve policy announcement.
Silver meantime edged above $33.20 an ounce this morning, a slight gain on where it started the week.
Several analysts have predicted the Fed will today announce open-ended Treasury bond purchases worth $45 billion a month. In September the Fed announced it will buy $40 billion of mortgage-backed securities a month, while its maturity extension program Operation Twist, through which it sells shorter-dated bonds to buy longer-dated ones, ends this month.
“We have a six-month [gold price] target of $2000 an ounce, but see scope as well for prices to rise to $2400 an ounce by the end of 2014,” says the 2013 outlook from Bank of America Merrill Lynch metals strategists this morning, in contrast with the Goldman Sachs gold forecast for 2014 made last week.
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