Analysts agree – they’re wildly bullish on gold! From Hard Assets Investor:
The analyst community remains overwhelmingly bullish when it comes to gold in 2012. Respected precious metals consultant GFMS came out Tuesday with its call for $2000/oz gold within the next year.
“Concern over nearly all currencies’ long-term value remains acute, and this includes the dollar, which to a large extent has found favor simply as the ‘least bad’ option, especially in light of growing fear over the break-up of the euro zone,” the firm said.
But while GFMS is bullish this year, it is bearish thereafter, saying: “… the gold market is nearing the closing stages of its decade-long bull run and, once the macroeconomic backdrop changes and investment in gold fades — probably sometime next year — a secular retreat in the price will unfurl.”
That’s quite a controversial view. Indeed, most analysts remain bullish on gold for the foreseeable future. Goldman Sachs has a 12-month target price for gold of $1940.
“Our view on gold is driven by our view on underlying real interest rates,” Goldman said. “It is the sharp drop in price that makes it more attractive.”
My understanding is that both Marc Faber and Felix Zulauf are cautious on gold in the near term…and I believe both like sub-$1500 gold as an opportunity to add. Today we closed at $1667 – and with Obama still speaking as I type, a white swan event for real money is only a blunder away.
While analysts fawn over gold, the barbaric relic traces out a series of lower lows and lower highs.