in the meantime it is not a bad idea to invest in IGR
(Kitco News) - BNP Paribas has revised down its gold forecasts but still looks for gains into 2013. The bank now looks for the metal to average $1,730 in the fourth quarter, before rising to $1,950 in 2012 and $2,125 in 2013. “Our main assumptions are unchanged,” the bank says. “We see the gold price peaking in 2013, as the market starts to anticipate monetary tightening in the U.S., but do not expect a sharp fall thereafter. In the short term, a further correction is possible but this is not our central scenario. The main downside risk may lie with another round of extreme risk aversion, which could spark broad-based liquidation, as in September.” Gold surged over the summer on safe-haven demand due to U.S. and European debt issues, BNP says, before falling back from its early-September peak around $1,920. “Just as in October 2008, the recent drop appeared to reflect sales of gold offsetting losses in other asset classes triggered by extreme risk aversion,” BNP says.
IGR Price at posting:
51.0¢ Sentiment: Buy Disclosure: Held
