Everyone loves gold these days. Deutsche Bank sees $2000 gold soon. And Citi says it could go to $2500 in six months.
BofA, too: the firm recently initiated a $2,400 target price for the
shiny yellow metal since the Fed's announcement of open-ended bond
buying.
However, BofA analyst Stephen Suttmeier thinks there's a case to be
made that gold goes even higher than the bank's official call.
In a note to clients today, Suttmeier writes:
The secular bull case for Gold $3000
We remain
secular bulls on gold. Key chart and uptrend supports between $1600 and
$1400 have held and we have viewed $1550-1500 as a good area to buy
gold. The breakout above the year-long downtrend line completes the
correction within the longer-term uptrend and targets resistances at
$1800 and $1925. But, the secular bull market for gold points to
a stronger rally to $2050-2300 and up to $3000 longer-term. The top of
the rising channel from mid 2005 is near $2375 and reaches the $3000
area by early 2014. Key channel supports are in the $1600 and
$1400 areas and rise ~$25/month. The chart below shows the secular bull
market for gold.
Here is the chart Suttmeier is looking at:
BofA Merrill Lynch
source : www.businessinsider.com
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