Cardinal Barclays - perfect Thunderstorm for climb of the gold
29-09-2008 newspaperA perfect thunderstorm is close to forming on the auriferous market, therefore the metal would reach a new record in the next six months propped up by the suspense and the weak panorama of the dollar, said on Monday the director of prime matters of Cardinal Barclays.
Although the gold can fall down briefly if other markets recover once the American legislators approve a plan to rescue to the financial system, a reconsideration of the merits of the metal they it would take beyond the record for 1.030,80 dollars the ounce registered in March, said Jonathan Spall, the director of the division prime BarCap matters.
“I believe that we should reach new maxima in next 6 months”, he said to journalists in the annual conference of the London Bullion Market Association celebrated in Kioto. “We should be in a perfect thunderstorm for the gold”, he added.
Governments of the United States and Europe have intervened this month to rescue to important banks and financial institutions, which were close to collapsing after that the poisonous debts will unleash the worst crisis in decades.
“I was always very skeptical with regard to the argument that the gold (serves) like a sure refuge, but that changed dramatically for me and for others, now there are the financial institutions those that are under threat”, he affirmed.
Spall, who works with central banks and funds of coverage on the markets of the precious and basic metals, added that there are signs of that the coverage funds are more interested in the gold.
The prices of the gold climbed this month from a minimum of 11 months near to 736 dollars the ounce, to little more than 900 dollars, but they braked his climb because many financial players have been only in search of cash.
Cardinal Barclays: www.barcap.com
The same consensus we could have heard for Patrick Chidley, analyst of Barnard Jacobs Mellet.
“There are more people who admits that the gold is a sure refuge. On the other hand, while the American dollar keeps on reflecting a valuation of inflation superior to the national money-market rates. Every time they are more the investors who look for a way of getting rid of the currency and of investing in tangible assets. They will think about how to get rid of the dollars and the obvious refuge is the gold.”
The analyst anticipates that the yellow metal will keep on rising in what stays of the year and US might overcome them 1.000/oz dollar in 2009 with the deepening of the crisis.
Barnard Jacobs Mellet: www.bjm.co.za
29-09-2008
