Android app on Google Play

Analysts See Gold at $2000 but $1800 Proves Challenging (GLD) (IAU) (SLV)

October 16, 2012 11:55 AM EDT Send to a Friend
Get Alerts GLD Hot Sheet
Trade GLD Now!
Join SI Premium – FREE
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).




You May Also Be Interested In


Related Categories

Commodities, ETFs

Related Entities

BMO Capital

Add Your Comment