Gold could hit $2500/oz before year-end: JP Morgan
Gold investors could reap record windfall benefits from the economic uncertainty that crashed global stock markets Monday, say J.P. Morgan commodity analysts Colin Fenton and Jonah Waxman. The analysts predicted bullion could rise to $2500/ oz by the end of 2011, compared to an earlier J.P. Morgan prediction of $1800/oz, made before Standard and Poor downgraded the US debt.J.P. Morgan says commodities tied to the United States are likely to stay caught in the doldrums, the CBC reported:
“In the near term, most commodity markets appear likely to convulse lower, as a growth scare dislodges physical inventories and impairs orders,” they said. “These fears could linger in the United States, where private funding costs will likely go up and household balance sheets will be further strained.”
Gold priced in Canadian dollars hit a record C$1,686.00 an ounce on Monday as a shock downgrade of the U.S. credit rating late on Friday sparked a rush among investors into assets seen as lower risk, and as euro zone debt concerns simmered, Reuters reported.
“In the near term, most commodity markets appear likely to convulse lower, as a growth scare dislodges physical inventories and impairs orders,” they said. “These fears could linger in the United States, where private funding costs will likely go up and household balance sheets will be further strained.”
Gold priced in Canadian dollars hit a record C$1,686.00 an ounce on Monday as a shock downgrade of the U.S. credit rating late on Friday sparked a rush among investors into assets seen as lower risk, and as euro zone debt concerns simmered, Reuters reported.
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