Macro, supply/demand forecasts mix could send gold soaring to $1,000/oz
Citigroup suggests that $1000/oz gold could become a reality if a mix of macro and supply demand forecasts sufficiently gel to send gold soaring beyond its historic ceiling of $850/oz.
Author: Dorothy Kosich
Posted: Tuesday , 09 Oct 2007
RENO, NV -
Citigroup metals analysts said Monday they are positive on gold "based on
a mix of macro and supply/demand forecasts," that could send gold beyond its
historic ceiling of $850/oz to as much as $1,000/oz or higher under certain
circumstances.
Noting that 2007 is running $62/oz above the 2006 average of $605/oz,
analysts John H. Hill and Graham Wark declared that "we would not be
surprised to break its historical highs of $850/oz."
The analysts theorized that the policy resolution to the current credit
crunch may be "an extended ‘Re-flationary Rescue,' in a new cycle of credit
creation and competitive currency devaluations that should be inherently
positive for pro-cyclical basic materials, hard assets, oil and gold."
"This could take gold to $1,000/oz or higher," they predicted.