Gold bullish outlook 2012 anticipates further strength in the U.S. dollar going into the New Year may be the next test for the yellow metal. Unlike previous periods of risk aversion that occurred in 2009 and 2010, this time U.S. dollar strength is not being accompanied by strong inflows into physically backed gold ETFs, said Deutsche Bank in its final weekly commodities report of 2011.
According to bank, liquidation in Comex Gold over the past couple of months appears to be drawing to a close, although currency trends could trigger yet another round of speculative liquidation. Overall, gold has outperformed other precious metals in recent months.
Looking ahead, Deutsche Bank wrote: “We expect the conditions that have driven gold returns higher over the past 11 years will persist into 2012, namely negative real interest rates, a high U.S. equity risk premium and central-bank buying.”
The bank is forecasting $1,750 gold in the first quarter of 2012, $1,850 in the second quarter, then $2,000 in the third and fourth quarters.
Spot gold dealings had lost nearly $38 on Thursday and closed near their lows for the day, threatening to breach the $1,700 price support. This morning's near $10 opening advance to $1,715 per ounce represented perhaps in part a response (and a small one at that) to the EU's fiscal accord but more likely a minor corrective bounce in a market that still has the euro trading at $1.33 and the US dollar unwilling to roll over and fall on a sword. One would have expected a truly grand celebration ($75 or more) in the yellow metal's trading space on the back of the "be-all end-all" agreement that was cobbled together in Marseille.
According to bank, liquidation in Comex Gold over the past couple of months appears to be drawing to a close, although currency trends could trigger yet another round of speculative liquidation. Overall, gold has outperformed other precious metals in recent months.
Looking ahead, Deutsche Bank wrote: “We expect the conditions that have driven gold returns higher over the past 11 years will persist into 2012, namely negative real interest rates, a high U.S. equity risk premium and central-bank buying.”
The bank is forecasting $1,750 gold in the first quarter of 2012, $1,850 in the second quarter, then $2,000 in the third and fourth quarters.
Spot gold dealings had lost nearly $38 on Thursday and closed near their lows for the day, threatening to breach the $1,700 price support. This morning's near $10 opening advance to $1,715 per ounce represented perhaps in part a response (and a small one at that) to the EU's fiscal accord but more likely a minor corrective bounce in a market that still has the euro trading at $1.33 and the US dollar unwilling to roll over and fall on a sword. One would have expected a truly grand celebration ($75 or more) in the yellow metal's trading space on the back of the "be-all end-all" agreement that was cobbled together in Marseille.
Gold is inching lower overnight as the market-wide correction in post-FOMC moves seemingly begins to lose momentum. The upcoming speech from Ben Bernanke is likely to be the most market-moving bit of information to hit the tape over the coming 24 hours. Any clues alluding to the possibility that policymakers may yet opt to resume increasing the balance sheet in the event that growth remains disappointing are likely to stoke the yellow metal higher, while a strong indication that the Fed has moved on to other options would have the opposite effect.
Gold price on the technical front, near-term support and resistance levels remain at $1624.09 and $1680.78, the 23.6% and 38.2% Fibonacci retracements respectively. A break lower exposes $1589.14. Gold is inching lower overnight as the market-wide correction in post-FOMC moves seemingly begins to lose momentum.
The upcoming speech from Ben Bernanke is likely to be the most market-moving bit of information to hit the tape over the coming 24 hours. Any clues alluding to the possibility that policymakers may yet opt to resume increasing the balance sheet in the event that growth remains disappointing are likely to stoke the yellow metal higher, while a strong indication that the Fed has moved on to other options would have the opposite effect. On the technical front, near-term support and resistance levels remain at $1624.09 and $1680.78, the 23.6% and 38.2% Fibonacci retracements respectively. A break lower exposes $1589.14.
Gold price on the technical front, near-term support and resistance levels remain at $1624.09 and $1680.78, the 23.6% and 38.2% Fibonacci retracements respectively. A break lower exposes $1589.14. Gold is inching lower overnight as the market-wide correction in post-FOMC moves seemingly begins to lose momentum.
The upcoming speech from Ben Bernanke is likely to be the most market-moving bit of information to hit the tape over the coming 24 hours. Any clues alluding to the possibility that policymakers may yet opt to resume increasing the balance sheet in the event that growth remains disappointing are likely to stoke the yellow metal higher, while a strong indication that the Fed has moved on to other options would have the opposite effect. On the technical front, near-term support and resistance levels remain at $1624.09 and $1680.78, the 23.6% and 38.2% Fibonacci retracements respectively. A break lower exposes $1589.14.
