← Back to All Videos

Gold Prices Could Surge to $2,400

Blog Nov 13, 2012

QE3, the third round of quantitative easing announced by the Fed, could cause Gold Prices to rally, with the precious metal reaching an all time high of $2,400 per ounce by the summer of 2014.

BlackRock fund manager Evy Hambro has predicted gold prices to skyrocket through next summer, boosted by the latest round of quantitative easing by the US Fed. The first round of quantitative easing in early 2009 resulted in a jump in gold prices from $900 per ounce. Since then, the precious metal has been on an upward turn.

Hambro, who invests in gold and gold equities, expects gold prices to continue to climb in view of QE3 to reach as high as $2,400 per ounce by the middle of 2014.

In his research note released in the first week of October, Hambro stated, “The gold chart has turned decidedly bullish with the 50-day moving average rising above the 200-day moving average. The last time this happened was in February 2009, which interestingly was shortly after the implementation of QE1. Then, gold was $900/oz and never looked back. Should we witness a similar rally, prices would be taken to $2,400/oz by midsummer next year – and $1,760/oz would be the new floor.”

According to data released by the International Monetary Fund in October, central banks have continued to purchase gold and countries like Paraguay and South Korea have recently upped their reserves. Through last year, South Korea has increased its bullion assets by 100% by adding 16 tonnes of bullion in July alone.

Hambro added, “If the third round of quantitative easing leads to further weakness of the US dollar, central banks may be prompted to switch more cash reserves into gold.”

On November 1, 2012, things were up 9.7% year-on-year for gold prices.

Thumbnail Photo We believe that everyone deserves a properly developed strategy for financial safety.

Lynette Zang

Chief Market Analyst, ITM Trading

Sources & References In This Article

    Similar Posts

    Blog Jan 9, 2020

    REAL OR FAKE GOLD, BIG VS SMALL BANK DEPOSITS… Q&A with Lynette Zang and Eric Griffin

    Learn More
    Blog Nov 28, 2018

    ENTERING THE MINEFIELD: Is Your Armor Ready? By Lynette Zang

    Learn More
    Blog Nov 27, 2018

    RECESSION to RESET: What Happens Next? Q&A with Lynette Zang and Eric Griffin

    Learn More
    Blog Nov 21, 2018

    A GLOBAL THREAT US & China Clash of the Titans

    Learn More
    Blog Nov 20, 2018

    PRECIOUS METALS STRATEGY: Get the MOST from Gold & Silver. Q&A with Lynette Zang and Eric Griffin

    Learn More
    Blog Nov 16, 2018

    IS THIS IT? Corporate Buybacks vs ETFs By Lynette Zang

    Learn More
    Blog Nov 14, 2018

    ETF-YOU: Will You Get Screwed? By Lynette Zang

    Learn More
    Blog Nov 13, 2018

    THE FUTURE OF GOLD: As Economic Patterns Shift. Q&A with Lynette Zang and Eric Griffin

    Learn More

    Not Sure What Works for You?

    Our team has over a century of combined experience in guiding our customers to the best products is for their wealth protection and preservation goals. Call us today.

    or schedule a call

    Schedule A Strategy Session

    Get Your Free Protection Guide

    Stay Informed

    Receive the latest updates regarding the economy.