October 18, 2010, Los Angeles – Gold bullion prices ended higher for an 11th straight week after closing Friday at $1,369 an ounce and gaining 1.7 percent for the week. Silver closed at $24.34 an ounce after gaining 4.9 percent for the week and 38 percent for the year.
With the price of Gold moving almost vertical, investors have been looking for a dip and a chance to enter the market, and it came on Friday.
The week began with the IMF’s failure during the previous weekend to reach some accord on tackling the rising international currency tensions which kept the dollar under pressure.
Citibank raised its forecast for the price of Gold to $1,450 per ounce, pointing to the increase in safe haven demand for Gold.
The firm then raised its Silver price forecast to $25 from $20 per ounce, noting that “The strong silver rally is also likely related to the fact that global industrial production has recovered to pre-crisis levels.”
Goldman Sachs followed suit and raised the bank’s 12 month target for Gold on Tuesday to $1650 by Oct. 2011. “With US real interest rates [after inflation] pushing lower off the slowdown in the pace of the economic recovery – and the growing prospect of another round of quantitative easing – we expect gold to continue to climb,” wrote David Greely and Damien Courvalin.
The Fed will buy about $32 billion of Treasuries from Oct. 15 through Nov. 8, as reported by the New York Fed on Wednesday. The purchases are being made by the Fed under a program announced at the Aug. 10 meeting reinvesting funds from maturing agency bonds and mortgage backed securities. The Fed has bought about $44 billion so far under the program. The price of Gold surged to a new all time high of $1,387 an ounce on Thursday while Silver hit a 30 year high of $24.90 an ounce. Gold prices have gained more than 25 percent so far this year.
Goldman Sachs said Gold is still a very good buy in the current environment. “We expect gold prices to continue to rise from current levels as real interest rates should remain low on a continuation of accommodative U.S. monetary policy,” the bank said in a note.
The Fed has already printed over $1 trillion in its QE1 campaign, it’s likely to begin printing again very soon for QE2.
Don’t be caught off guard by the coming debasement of the dollar when printing resumes. Protect your wealth by investing in physical Gold and Silver bullion.
One way to invest in the Gold and Silver market is through an IRA. It’s very easy to add Gold and Silver bullion to your IRA so, do it today by calling 1.800.545.2525 1.800.545.2525 and speaking to an IRA specialist.