“Plenty of Fuel” for $2,000 Gold Within 6 Months

There is “plenty of fuel for the fire to see gold go higher,” according to Jeffrey Wright, metals and mining analyst at Global Hunter Securities.

In a note to clients, Wright reiterated his bullish outlook on gold and his six-month target of $2,000 per ounce.

The two primary catalysts for his positive stance on the yellow metal were further accommodative monetary policies from the Federal Reserve and a deteriorating economic environment in the euro zone.

Wright’s comments came as COMEX gold futures climbed to a new all-time high on a closing basis of $1,785.00 per ounce on Tuesday.

Following the COMEX close, gold futures hit $1,788 in electronic trading – just 1.6% below their intra-day record reached last week.

Gold Futures Settle at New Record Closing Level

Gold futures rallied on Tuesday to settle at a new all-time record high on a closing basis.

COMEX gold futures, per the December contract, finished higher by $27.00, or 1.5%, at $1,785.00 per ounce.  In doing so, the yellow metal surpassed its previous record close of $1,784.30, reached last Wednesday the 10th.

However, on an intra-day basis gold futures reached a high today of just $1,789.80 per ounce – which is well below the $1,817.60 record all-time high reached on August 11.

Silver futures climbed alongside gold, with the COMEX September contract settling higher by $0.51, or 1.3%, at $39.82 per ounce.

Precious metals rallied this morning amid weakness in cyclically-sensitive equities and commodities, and extended their gains following a joint statement from Angela Merkel and Nicolas Sarkozy on proposals to strengthen the euro zone economy.

QE3 “Most Likely Scenario,” Goldman Sachs Says

A third round of quantitative easing (QE3) by the Federal Reserve is now considered the “most likely scenario,” for U.S. monetary policy, according to Goldman Sachs.

In a report to clients, Francesco Garzarelli – chief interest-rate strategist at Goldman Sachs – wrote that “The recent sharp price action in equities and bonds has probably more to do with a focus on ‘tail risks’ in an anaemic US growth environment, concerns about a broader global growth slowdown (as reflected in the sharp moves in global indices and cyclical currencies) and positioning considerations, rather than outright weakness in the incoming data.”

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