GOLD PRICES CLIMB ON BARGAIN HUNTING

by Goldline.com | July 09, 2010

Despite a recent increase in investor risk appetite, gold prices are rising on the New York Spot Market Friday as of 11:38 a.m. EST on bargain buying and increasing demand from India, the world’s largest gold jewelry market. "Dips in gold continue to find pockets of investment bargain hunting," James Moore, an analyst at TheBullionDesk.com, wrote in his daily note this morning. (The Street, 7/9/10)

Stocks are struggling on the New York Stock Exchange Friday, following a three-session rally this week. Little economic news is scheduled for today, which may further suppress any gains in stocks. "The market has a wait-and-see attitude," said Bob Tull, chief operating officer of Old Mutual Global Index Trackers. "People are making their own opinions of whether it's going to be a different world from one day to the next, and are sitting on the sidelines until we continue to see smaller positive gains and a nice gradual progression with less volatility." (CNN Money, 7/9/10)

Fortune magazine is reporting this morning that central banks are abandoning the U.S. dollar, according to a new report from Morgan Stanley analyst Emma Lawson. The report fuels speculation that the dollar is ‘firmly on its way to losing its status as the reserve currency of the world.’ Fortune also notes that just last week, America's debt leapt $166 billion in a single day. That one-day run-up is greater than the entire U.S. annual deficit in 2007. In addition, the United Nations released a report last week that the dollar should no longer be the world's reserve currency because it is not stable enough. (Fortune, 7/9/10)

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S&P Capital IQ - Gold: $1,900 (in 2012) "Leo Larkin, metals and mining analyst at S&P Capital IQ, thinks that $1,900 gold might not be that much of a stretch [in 2012]. 'Gold has been ..."
Citigroup - Gold: $2,300 - $2,400 (by end of 2012) "While we remain cautious on Gold in the near term...we continue to believe that the bull market remains intact...we believe that 2012 may be..."
Leeb Capital Management - Gold: $2,500 - $3,000 (in 2012) "I'll give you my target for gold at the end of 2012, it's going to be trading somewhere between $2,500 and $3,000. This..."
Global Hunter Securities - Gold: $1,800 (in 2012) "'What I am looking for is a gold price of $1,800 an ounce in 2012,' says Jeffrey Wright, senior research analyst at Global Hunter..."
US Global Investors - Gold: $3,600 (by 2017) "'People get so caught up with the next three minutes for gold and they should really be focused on the next three years,' says Frank Holmes, ..."
Goldman Sachs - Gold: over $1,900 (in 2012) "Wall Street investment bank Goldman Sachs predicts that gold's bull run will continue into 2012 with a low interest rate environment and..."
CNBC - Gold: $2,400 (no period given) "Gold will top $2,400 an ounce. The long-term bull market in gold marches on. Gold won't make a straight shot to a new inflation-adjusted high. As long..."
Nomura - Gold: $2,000 (by end of 2012) "Nomura has raised its forecast for gold prices to $2,000 an ounce by the end of 2012, from $1,800 earlier. The brokerage said the low-interest rate..."
Morgan Stanley - Gold: $2,200 (in first half of 2012) "Gold will lead a rally in commodities in 2012 as Europe's sovereign-debt crisis continues to roil financial markets, spurring demand for ..."
UBS - Gold: $2,050 average in 2012 "[Gold] remains one of the top commodity picks for 2012 as 'most of the factors that pushed gold higher in 2011 are not going away,' according to UBS..."
Bank of America Merrill Lynch - Gold: $2,150 - $2,200 (average in 2012) "From a technical perspective we believe that the bull trend for gold remains intact… with gold having not yet met any of..."
TheStreet.com - Gold: $2,500 (by May 2013) "I want to own gold here. I think gold is going to $2,500 eighteen months from now... Gold has been up for ten straight years and this going to be the..."