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Gold will end next year at $1,400 an ounce - Capital Economics

Submitted by GoldCore on 10/14/2015 08:48 -0400

Gold will end next year at $1,400 an ounce - Capital Economics

Gold prices are headed for a critical test according to The Week today. The Federal Reserve's 'wait and see' stance suggests policymakers there are in no rush to increase rates this year. "Sentiment over interest rates has been controlling gold prices all year," says The Week "as traders prepare for a rise that will lessen the attraction of non-yielding commodities and boost the dollar".

Market analysts agree that a threshold is looming "in the form of the recent high in August and the 200-day rolling average gold price". However, some are more optimistic than others. Mining.com point to analysts at Denmark's Saxo Bank who "sense a change of sentiment is unfolding", with a rise above the $1,170 August high confirming that "a floor has been established".

Capital Economics are suggesting that gold could "hit $1,200 before the end of this year, rising to $1,400 by the end of 2016".

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Wed, 10/14/2015 - 15:31 | 6668162 gaoptimize

Keeping my eye on the physical vs. paper ratio. Someone may be calibrated on the ratio of the price of gold to the Dow. Let's say that the Dow ends the day at 16,900 and gold at 1,190 = a ratio of 14.2 . I'm not going to get excited until it moves to 10. At that point, many of the sheeple I know will probably start adding gold as protection to their portfollios, but they will find that physical alternatives are limited and cary a high premium. I think that is the moment when the general public wakes up to the paper-to-physical ratio and physical quickly moves above $2,000/ounce. I don't think this will take two years.

Wed, 10/14/2015 - 15:27 | 6668132 Jameson18

How about 1200 by the end of day.

Wed, 10/14/2015 - 13:37 | 6667587 Lost in translation

< gold down first, then up.

< gold going up, up, UP from here.

Wed, 10/14/2015 - 13:47 | 6667611 LowerSlowerDela...

It all depends on the condition of the Fed's monkey hammer...

Hammer in the shop for repair - up, up, Up.

Hammer completely functional with turbochargers at full pressure - down, down, DOWN.

Wed, 10/14/2015 - 14:34 | 6667831 eurogold

The way things are going around the world at the moment, it would not surprise Me if Gold were 2000.- by the end of this year

Wed, 10/14/2015 - 12:15 | 6667269 Conax

I just painted the porch.

I predict that paint will be perfectly dry by the end of 2016.

A fearless predictor, I am.

If it's still tacky, well, you will have forgotten this by the end of 2016.

-then I shall pontificate once again.

Wed, 10/14/2015 - 11:56 | 6667198 Jungle Jim

Um, that's not very exciting.

Wed, 10/14/2015 - 11:37 | 6667114 Tinky

Is there anyone at Capital Exconomics who would care to make a five-figure side bet, using those numbers as the over/unders?

If so, let's set up an escrow account tomorrow.

Wed, 10/14/2015 - 11:20 | 6667030 Edward Quince

I recommend purchase of shares at this time, gold is little more than a barbarous relic of the past.

Wed, 10/14/2015 - 11:20 | 6667025 Dick Gazinia

$1,400 / oz

$10,000 / oz

Wed, 10/14/2015 - 11:59 | 6667213 83_vf_1100_c

Price - 300/oz in Ameros or whatever they name the new fiat.

Time frame - I really expected to be defending my property against the FSA by now. So, whodafucknose? Maybe The Club but I ain't in it.

Wed, 10/14/2015 - 10:55 | 6666759 LowerSlowerDela...

"... are suggesting..."

I'm suggesting that the suggesters have been dramatically wrong in their (now) suggestions. Yes, the Fed, et al, make predictions almost impossible other than to say that more money will be printed until everything collapses.

So it is now a suggestion, not a prediction.

Wed, 10/14/2015 - 09:30 | 6666573 DeadFred

LOL, gold has only the 200 dma between it and $1,400 right now, what will stop it after it breaks through other than consolidation pauses? It will be at $1,400 before this year ends and head back toward $2,000. They have lost control of the markets and we're just beginning to see it now but uncontolled=explosion.

Wed, 10/14/2015 - 10:10 | 6666710 Son of Captain Nemo