Gold News

Gold Prices 'to hit $1,200 per oz' in Q3

A leading German stock market strategist has today (April 17th) predicted that Gold Prices will hit $1,200 per ounce in the third quarter of 2009, Gold Investing News reports.

Heiko Seibel, director of research at Munich-based firm CM-Equity AG, has claimed that the US Standard & Poor's 500 Index will plunge to about 450 points in June or July this year.

In that scenario, Mr. Seibel - who correctly anticipated the timing of the early March to early April stock market rally - has explained that Gold Investment would be richly rewarded.

He told the news provider: "We should see a culmination of massive price weakness in stocks within weeks, which will cause gold to reverse its current trend to establish new highs beyond $1,000 early in the third quarter of this year - maybe even testing the $1,200 mark."

Mr Seibel added that within a few weeks, we will see the "stock lows of our lifetimes", pushing the yellow metal higher as "gold bullion is historically an inverse proxy to the stock market".

His comments come after Tony Daltorio, an independent analyst who spent 20 years as a broker and trade supervisor at Charles Schwab, outlined eight main reasons for gold investment.

Outlining one section of his argument, he told Seeking Alpha: "The selling of Gold Bullion from global central banks has slowed and production of new gold from mines has also been diminishing.

"A basic economic rule of supply and demand would show that reduced supply should result in increased prices."

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