By Allen Sykora
Gold could trade up to $1,700 an ounce or down to $1,500 in the near term, depending on how the U.S. budget/debt-ceiling impasse plays out, says TD Securities. “If the U.S. government does not act in time and in a comprehensive way, where there are real, sustained and predictable deficit reductions, investors will likely continue to buy gold and silver as a hedge,” TDS says.

“We believe that there is a real possibility that (gold) could go north of $1,700/oz in the near term, with silver at about $45/oz. Conversely, an agreement could very well move gold to $1,500/oz and silver materially below the $35/oz mark.

It seems to us that taking naked positions in this space is quite risky, as it will be the headlines driving the price and not the fundamentals.”

By Allen Sykora of Kitco News; asykora@kitco.com