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Kelly Mikulski
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We need to find the level at which underlying physical demand will support gold. Until then, I wouldn't be comfortable with gold up here, because it's all investment and speculative money at the moment.
John Reade
Of course, gold can go higher on investment and speculative demand, but there seems no clear motivation for new money to be committed to gold at this time.
John Reade
I still want to see this correction find some decent physical demand ... Once we can prove that physical demand is actually going to support gold, that will encourage people to take gold higher again.
John Reade
We believe the strength of the physical market is vitally important for 2006; even though gold is rising on speculative and investment buying, at some point there will be a reversal of this trend and gold will correct.
John Reade
I do believe that the recent run up in gold has been almost entirely driven by speculative and investment demand as jewelry demand has fallen sharply.
John Reade
The market for gold is very thin and gold is higher on a bit of buying. Gold could test $518/oz or maybe $525/oz today. The range for the rest of today, for gold, is likely to be between $518/oz to $525/oz. Despite the risk of a downwards correction, similar to that seen at the start of 2005, the outlook for the precious complex remains very upbeat with the combination of positive supply and demand fundamentals, good physical and growing investor demand set to push the metal beyond the $541/oz high seen in early December and continue the bull-trend across the year.
James Moore
The level at which physical demand emerges to support the metal will then form a base for gold to make fresh gains.
John Reade
Expect gold prices to continue higher as the continuing allocation of funds into commodities underpins new higher-level prices. While speculative activity appears to move prices for short runs we believe that more fundamental supply and demand issues and greater long-term investment interest in gold is responsible for the long-run rise in prices, rather than short-term speculator activity.
John Meyer
For the moment gold should continue to find support above the $500/oz level with interim support pegged at $512/oz to $505/oz, while resistance is pegged at $518/oz to $525/oz.
James Moore
For the moment, gold appears comfortable just below the $550/oz level, working between $542/oz and $550/oz. While the mid to longer-term outlook remains bullish for gold, the yellow metal needs to make a convincing break above $550/oz, in the next few days, in order to avoid losing some of its short-term momentum and potentially correct back to $525/oz.
James Moore
In our opinion, the supply and demand dynamics have set the stage for a multi-year bull market for gold. Even as companies begin new projects, decreased exploration in the 1990s has caught up with the industry. It generally takes a few years for a new mine to become operational. The gap between production and consumption of gold should widen as output likely stagnates and physical demand rises.
Leo Larkin
[5. In his essay] Can Gold Producers Survive By Promoting Jewelry?, ... At the end of the day, to revive the fortunes of the gold producers, it is necessary and sufficient to restore gold as the choice of free markets and free people all over the world as money that doesn’t depreciate at home or abroad; as money that is as steady as the stars; as money that is as faithful as the tides or, as the American Federation of Labor put it at the turn of the last century: ’Gold is the standard of every great civilization.’
Larry Parks
There appears to be a material deviation on apparent US dollar strength (or euro weakness) as the gold price finds strength from physical demand, inflation fears and gold as a currency.
David Hall
Gold prices don't go up just because jewelers need more gold, they go up because gold is an investment. The same has happened to oil.
Roger Diwan
The weakness in Asian currencies is dampening demand for gold in the region that is traditionally the biggest consumer of gold. Equities may need to fall much further before investors in the developed world start diversifying into gold.
Ted Kempf
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