Friday, February 05, 2010

Gold to hit $1,350 - $1,400 by late Spring - John Embry TNR.v,, BVG.v, SGC.v,, KTN.v, EPZ.v, ASM.v, FVI.v, GBN.v,,, FST.v,

After last week's sovereign debt scare Gold still tries to build a potential Double Bottom reversal at 1065: buyers quickly snap all orders last Friday making a potential bullish candle. Next level of support will be 1025 with MA200 drifting in that area.
"We have mentioned before about Gold Sell signal and suggested that there will be a time to accumulate Juniors, which will provide more upside opportunities with another Leg Up in the gold market. As it was scary before with gold over 1200 USD/oz, when everybody was bullish - so it is now very comforting to hear that Soros is suggesting that gold is a Bubble, Prechter is waiting for 40% correction and everybody is bearish about the Gold."
Listen to John Embry Chief Investment Strategist Sprott Asset Management
Topic: Ponzi Scheme & Gold Bull Markets on Financial Sense Hour 3

Speaking on the Mineweb Gold Weekly Podcast, Sprott Asset Management's chief investment strategist says while the yellow metal is likely to continue to consolidate over the next few weeks, the next major move will be up.

Author: Geoff CandyPosted: Wednesday , 03 Feb 2010
Gold should continue to consolidate over the next few weeks but, the next big move is likely to be up.
This is the view of Sprott Asset Management's chief investment strategist John Embry, who says he is looking for the price of the yellow metal to hit around $1,350 to $1,400 by late spring.
Speaking on the inaugural Mineweb Gold Weekly Podcast, Embry says the recent downward trend seen in the gold price is nothing more than a healthy correction.
"Gold had a 300 dollar plus run in US dollars from July into the early part of December and it has come under heavy pressure subsequently. It certainly has engendered immense bearishness amongst the commentators which is actually good from my perspective. I think the fundamentals are undisturbed and as a result it is setting up for another strong buy."
Asked about the link between gold and the US dollar, especially the recent strengthening of the dollar against the euro, Embry, says, while there is often a very clear link, the problems in the US and, by extension, the US dollar, are everywhere - especially given the huge budget deficit it is sitting with - so "the idea that one should run away from gold and into the US dollar because it is strengthening against the euro and several other currencies to me is actually preposterous.
"The idea that the US dollar is a safe haven today is flat out wrong," he added, "and that is going to be one of the major factors that are going to change the perceptions in the gold market going forward."
Another reason for Embry's conviction about bullion's next move, is the increasing role gold will play as a protection against monetary debasement.
"I think a lot of the world's wealth is figuring out that we have little choice given the debt problems in the world and the resultant unlimited creation of money and so I think there is a solid investment bid in the market for gold."
He adds, that concerns that have been raised about the possible impact the jewellery market is likely to have on the long term rise of gold because, he says, "all great bull markets in precious metals come from their reestablishment as money."
Post a Comment