Gold Chart Book

Friday, September 17, 2010

Dundee Wealth Economics has produced an extensive gold monitor chart book, looking at the yellow metal from all angles, but its price forecasts may actually be overtaken by current price action. Comex Gold hit a new ATH at $1,284.40 before retreating on stable US inflation data.
Dundee has nine bullish arguments
  1. Global fiscal and monetary reflation: PIIGS, US, etc.
  2. Global imbalances: the dollar must decline
  3. Global FX reserves are “excessive”: diversification
  4. Central bank attitudes to gold: now positive
  5. Gold is not in a bubble: room to rise
  6. Mine supply is flat: “peak” gold? 
  7. Investment demand: long-run uptrend
  8. Commodity price cycle: many years to run
  9. Geopolitical environment: positive
and six reasons for caution.
  1. Policy “exit strategies”: in US, Asia, Europe
  2. Strong dollar: gold correlation will turn negative again
  3. Deflation: government debt more attractive
  4. Liquidity of last resort: for Greece, Italy, ...?
  5. Dehedging finished: hedging to recommence? 
  6. A Chinese recession: commodity demand will decline, possibly gold demand too
Enjoy this handy compendium of gold data.
Dundee Gold Monitor Chart Book

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