Gold News

Gold Price Forecast to Hit $3000 Or More in "Speculative Blow Off"

VOLATILITY in the Gold Price has risen sharply in the last 12 months but remains well shy of "speculative blow-off" needed to mark the top of gold's long-term bull market, according to a senior US bank analyst.

Speaking at last week's Market Technicians Association symposium in New York, C.MacNeil Curry – head of FX and interest-rate technical analysis at Bank of America-Merrill – said that Gold Price volatility has been nothing like strong enough to signal the end of the metal's historic 11-year rise. Nor has trading volume been heavy enough, he believes.

Long-term secular bull markets "don't end quietly," said Curry.

"Until we see the Gold Price take some kind of massive speculative blow-off, where prices effectively double in a year or less, I have to maintain a long-term bullish bias."

Denying that the global economy needs to hit a "Doomsday scenario" for gold to rise substantially higher, Curry projected a move in the Gold Price to between $3000 and $5000 per ounce – with the potential for $7000 per ounce on his Elliott Wave analysis of long-term cycles and trends.

Curry also said he doesn't believe the Silver Price will join in this surge. Peaking at $50 per ounce in April 2011, silver has already seen its best levels, the BoA-Merrill Lynch analyst said, predicting that gold and silver – typically moving closely together – will decouple.

Curry's forecast for a doubling or more in the Gold Price contrasts with recent gold price targets set by a range of other bank and commodity desk analysts.

Buying Gold or silver today? "If there's an easier way, I've yet to find it," says one BullionVault user...

See all articles by Gold Bug here.

Please Note: All articles published here are to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it. Please review our Terms & Conditions for accessing Gold News.

Follow Us

Facebook Youtube Twitter LinkedIn



Market Fundamentals