Wednesday, January 4, 2012

Pullbacks appear done as gold begins moves back up in 2012

With two straight days of positive moves, gold appears to have reached the end of its pullback from the $1700's, and may be headed towards stronger highs.  2012 gold prices have been predicted by several banks this year, with estimates ranging from $1830 to over $2000 an ounce.

See bank estimates for gold in 2012.

Wondering why gold has moved by over $20 in the last few minues? Wonder no more - according to a note just released by Citi analyst Tom Fitzpatrick, the gold correction "has run its course and a rally is now back on the cards." Granted it is not all smooth sailing - "Gold may drop to $1,550 before turning", but when the turn comes, Fitzpatrick sees it as going all the way up to $2,400. He has the following technical observations: "Only a weekly close below $1,535/oz means corrections may be deeper." - Zerohedge

Chart courtesy of Citi


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