Fed tests gold upleg
Gold’s outlook and fundamentals remain really bullish.
Gold on Tuesday took a breather after a strong start to the year with futures contracts in New York retreating slightly to change hands for $1,232 an ounce, down just over $2 from Tuesday’s close.
Gold is still trading at its highest since October 22 after jumping more than 4% so far this year. Gold hit a near four-year low of $1,143 early November.
Marc Faber, economist, investment guru and Wall Street stalwart, came out on Tuesday as the year’s biggest gold bull, saying all asset classes except precious metals are overpriced and predicting a sharp move higher for the metal:
“I’m positive [that] gold will go up substantially [in 2015] — say 30%,” Faber, whose investment letter is called the Gloom Boom Doom Report, said at Société Générale’s global strategy presentation in London on Tuesday.
“My belief is that the big surprise this year is that investor confidence in central banks collapses. And when that happens — I can’t short central banks, although I’d really like to, and the only way to short them is to go long gold, silver and platinum,” he said. “That’s the only way. That’s something I will do.”
Continue reading at MarketWatch
