Analysts See Gold at $2000 but $1800 Proves Challenging (GLD) (IAU) (SLV)
Tweet
Share
E-mail
If analysts at BMO Capital are correct, gold will average $1950 in 2013 and $2000 in 2014. Analysts at the firm recently raised estimates on what they say is positive momentum for metals due to new and open-ended quantitative easing, referring to Fed monetary policy.
However, before BMO Capital's prediction can materialize, gold needs to break $1800 per ounce, a level that has proven to be a challenge for gold bulls. Since late last year, gold was rejected at $1800 three times - once in November, once in February, and again this October.
After failing again in October, the price of gold dropped $50 and is now trading below $1750, as it looks for support. For gold bulls, these levels might prove to be a good entry point, although with such heavy overhead resistance, upside could be limited.
BMO also has a bullish view on silver, with 2013 and 2014 price targets of $39 and $40, respectively. Silver currently trades near $33 per ounce.
Related ETF's include SPDR Gold Shares ETF (NYSE: GLD), iShares Gold Trust ETF (NYSE: IAU), and iShares Silver Trust ETF (NYSE: SLV).
However, before BMO Capital's prediction can materialize, gold needs to break $1800 per ounce, a level that has proven to be a challenge for gold bulls. Since late last year, gold was rejected at $1800 three times - once in November, once in February, and again this October.
After failing again in October, the price of gold dropped $50 and is now trading below $1750, as it looks for support. For gold bulls, these levels might prove to be a good entry point, although with such heavy overhead resistance, upside could be limited.
BMO also has a bullish view on silver, with 2013 and 2014 price targets of $39 and $40, respectively. Silver currently trades near $33 per ounce.
Related ETF's include SPDR Gold Shares ETF (NYSE: GLD), iShares Gold Trust ETF (NYSE: IAU), and iShares Silver Trust ETF (NYSE: SLV).
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Gold prices slide, close to breaking below $2,300 as safe haven demand wanes
- Crude Inventory Declined 6.4 Million Barrels Last Week
- API Shows US Crude, Gasoline Stocks Fell Last Week, Distillates Rose - Reuters
Create E-mail Alert Related Categories
Commodities, ETFsRelated Entities
BMO CapitalSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
