“This is usually a bullish period for gold,” says David Fuller
With gold bullion again trading above $1,750, it is interesting to pick up on some comments on the yellow metal from my friend David Fuller, co-writer of the FullerMoney.com newsletter.
Fuller said: “I have no trouble envisaging gold at $2,000 by March 2012, although this may require that stock markets remain reasonably steady, which would also not surprise me. Extremely low interest rates in the west and money printing by central banks remain tailwinds for the more attractive stock markets and especially for gold bullion, given its secular bull market.
“Although gold ran ahead of schedule with its August surge, this is usually a bullish period for bullion, given the Indian wedding season, Christmas and Chinese New Year buying. However, in recent years investment demand has been the main driver of gold’s advance. Consequently, investor sentiment will remain the key influence for gold bullion’s price trend over the foreseeable future.
“Some lateral trading is evident near $1,700 and gold appears to be consolidating above that level within the current support building phase. It has also regained approximately half of the decline since its accelerated peaks in late August and early September. Consequently, a close beneath $1,680 would now be required to delay the current outlook for further gains. A clear breach of the rising 200-day moving average, which appears unlikely at this time, would be required to seriously question higher scope in coming months.”
Source: Fullermoney.com, November 2, 2011.
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