Last Updated : 24 September 2012 at 20:00 IST
Gold has the potential to rise to $3500-4000: Sharps Pixley
Source :Commodity Online/Sharps Pixley
The central issue with respect to the third round of quantitative easing is whether it would lead to more jobs. Gold has the potential to rise to $3500 to $4000 levels as the size of the US Fed balance sheet keeps on risiing, according to Ross Norman, Chairman of Sharps Pixley, London
- Precious, base metals, Crude Oil may trade negative on weak global sentiments
- Taking cues from decline in spot gold prices coupled with weak global market sentiments, Spot silver prices decreased by 0.53 percent today. However, favourable economic data from Germany along with weakness in DX cushioned sharp fall in the prices.
- read more
The USDA forecasts 2013/14 Canada rapeseed production at 14.5 million tons, up 9 percent from las..
By Col. Ajay
As per financial astrology, transit OD Sun in Saturn house is ..
LONDON (Commodity Online): Gold has the capacity to rise to $3500 to $4000 an ounce depending on the increasing size of the US balance sheet, according to Ross Norman, CEO of Sharps Pixley, London. The Fed balance sheet which has grown four-fold from pre-crisis levels is set to double again.
“If gold is to maintain its run rate - and why wouldn't it - and if prices were to correlate with the size of the US monetary base, this would suggest that the gold price rally is also only roughly half way there (arguably it would outperform as confidence in the US dollar evaporates). In other words gold has the capacity to rise to between $3500 and $4000 - something we have maintained for some time. Furthermore, this level would see the dow/gold ratio marking a fall to 2.5:1 as we also forecast,” Ross Norman said.
The central issue with respect to the third round of quantitative easing is whether it would lead to more jobs.
“The biggest crisis in our view is less of under-employed people than under-employed money (or investment fuel). Some have coined QE3 as "QE Infinity" on the basis that the Fed will be purchasing $40 bn/month in MBS for perpetuity - bringing to mind that line from Buzz Lightyear "To infinity and beyond" - others might reflect on the latest policy move and call it "to insanity and beyond".”
Sharps Pixley maintains its bullish outlook with the best of prices yet to come, Ross Norman added.
- MCX Natural Gas bullish; resistance at 242 and 245 levels
- Volatility may mark Gold futures in the days to come
- MCX Copper sideways to positive; resistance at 412 and 416.5 levels
- Shale Oil production outside US, Canada is no game-changer yet: BofAML
- NCDEX Turmeric range bound; 5700-6150 range
- NCDEX Sugar bearish; support 2970