Markets

Gold a Strong Buy Near $1500

In its first quarter report of 2011, The World Gold Council said that gold demand grew 11 per cent compared with the first quarter of 2010, as the average gold price for the quarter rose 25 per cent year-on-year. It's an as-expected quarter, said the council.

With gold prices hovering around the $1500 mark, experts believe that a surge in prices in the next six months is likely, with prices reckoned to increase by about 15 per cent to reach $1618 by the end of the year.

The past few weeks have been marked by a huge increase in financial market uncertainty, Barclays points out in a note this morning.

The "risk-off" trade in commodities illustrates the extent of current concerns, analysts observed. By their estimates, almost $7 billion was withdrawn from commodity investments in May, "a level of outflow not seen since the financial crisis," the report pointed out.

Still, the analysts emphasized this isn't the time to lighten up on gold and silver.

"Quite the opposite. The current combination of slowing global growth and rising CPI pressures are conditions which in previous cycles have seen commodities outperform most other assets," Barclays wrote.

Shayne Heffernan

Shayne Heffernan oversees the management of funds for institutions and high net worth individuals.

Shayne Heffernan holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

www.livetradingnews.com

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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