the outlook for the goldprice is great relevant for SWA
Gold price to surge to $3,000: Jeffrey Nichols Published on March 06, 2010 10:25:00 IST
At some point the US Federal Reserve will need to finance the national deficit and this will leave Gold Prices in a bullish position.
That is according to Jeffrey Nichols: MD American Precious Metals Advisors, who told Mineweb that the US will most likely see long-term interest rate rises and monetary creation by the central bank.
He told the publication: "That type of development over time is very bullish for gold."
Sharing his long-term outlook for Gold Prices, the analyst predicted they will have reached the $1,500 mark by the end of 2010.
"Ultimately in the next few years there is a very good chance we will see $2,000, even a good possibility of $3,000 or higher," Mr Nichols added.
Such a bullish outlook is supported by Frank Lesh, of Chicago-based brokerage service FuturePath Trading LLC, who told Bloomberg that investors want to hold onto Gold Bullion due to fears over devaluation in paper currencies.
"Gold is a part of the currency crosses now," he was quoted as saying. "The international currency is gold."
EGS Price at posting:
29.5¢ Sentiment: Hold Disclosure: Held
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