NEW YORK (Commodity Online): The price of gold will shoot up and hit the magic $2000 within the next 3-6 months, says Tony Hall of Duet Commodities Fund, one of the top performing hedge funds this year.
"The decline is more of a healthy retracement than a change of the trend. I do think the trend is still in place and in the next three to six months we're going to reach the $2,000 mark” Hall said in a Bloomberg interview.
“Gold s quite a chameleon in terms of what it's used for. If things are going well then it can be an inflation hedge or a store of value. If we do have a crisis, it can be a safe haven. I personally think we're going to avoid a recession”, he went on to add
He believes that the US will avoid the recession but gold will sill remain a solid bet.
Goldman Sachs were also positive on the US economy and had earlier revised their Q3 GDP forecast for the US from 2% to 2.5%. The US payroll data for September indicated that employers added more jobs and hired more people while increasing earnings and work time.
The French and Italian industrial production for August rose unexpectedly and has also restored a ray of hope that Europe might be able to avoid a financial meltdown. German chancellor Angela Merkel and French President Nicolas Sarkozy had also promised that a reliable and concrete solution for the Euro zone debt crisis will be formulated within weeks.
Trading volumes at the Shanghai Gold Exchange have hit record levels. Chinese buying has been strong on account of lower prices.
COMEX gold is currently trading at around $1675/ounce
Tony Hall's Duet Commodities Fund has returned more than 30% year to date.
