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Gold Price Under Pressure for Now, Buy the Dips

The Gold price will average $2,100 an ounce in 2013, according to our latest research at Heffernan Capital Management.

Heffernan Capital Management has forecast a price of $38.90 for silver, and platinum at $1820, this research forms part of or 2013 commodities outlook.

The driver of the gold price is demand, in China and around the world, ETP assets have now reached $44.2bn, in a year when the gold price has increased by 9pc and ranged from $1,540 to $1,790 per ounce, this is not a fiscal cliff view, but rather a supply and demand of US Dollar issue.

Dollars will be churned out at a record rate and will lose value, interest rates are very low and Gold will become a safe haven of choice to many.

The US Federal Reserve in its latest statement on interest rate policy has said that it will keep US rates near zero until the country’s jobless rate falls closer to its historical average from the current higher level. The Fed will also continue its policy of quantitative easing, which effectively means printing money to force down the yield curve to stimulate growth through investment in the economy, all of this favors buying Gold.

The gold price should also benefit from similar open ended money printing commitments by the European Central Bank, while the pending election in Japan could result in a significant policy shift at the Bank of Japan as it seeks to more aggressively stimulate the domestic economy.

GOLD (Spot) intraday: the downside prevails.

Pivot: 1704.00
For Today: SHORT positions below 1704 with targets @ 1684 & 1678.
Long Term: The upside penetration of 1704 will call for 1712 & 1722.
Comment: as long as 1704 is resistance, likely decline to 1684.

Opinion published is an intraday view. Green Lines Represent Resistance | Red Represent Support Levels | Light Blue is a Pivot Point | Black represents the price when the report was produced