Gold Price "Susceptible" on Way to $3000
THE RECENT surge in world Gold Prices is now "susceptible to a near-term pulback" according to leading North American economist David Rosenberg, citing the rate of gain, growing speculative pressure, and strong media interest.
"Look, when gold shows up on the front page of the New York Times, you know that a lot of the news is in the price," says Rosenberg – former chief US economist at Merrill Lynch, and now chief economist and strategist at Canada's Gluskin Sheff asset management group.
"We remain big fans of the yellow metal and still see potential for $3,000 an ounce in coming years, as its hedging properties against the integrity of the global financial system are hardly going to subside.
"But the reality is that it has made...an asymptotic move in recent weeks, speculative fervor is evident in the Commitment of Traders [ Gold Futures ] report, and gold is now a front page story."
Also warning in his latest Breakfast with Dave commentary that crude oil's current price find a US economy "much more vulnerable to an energy shock now" than it was in 2007, Rosenberg advises his clients that the Gold Price "can correct all the way down to $1,213.52 per ounce (the 200-day moving average) without violating any long-term trendline."
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