Gold Seen Extending Rebound as Cyprus Revives Bulls: Commodities – Bloomberg 03-22-13

Salient to Investors:

Mark O’Byrne at GoldCore said there is a dawning realization that the crisis is far from over in Europe, while ultra-loose monetary policies will continue for the foreseeable future pushing up gold prices.

Adrian Day at Adrian Day Asset Mgmt said gold will continue its slow but steady recovery supported by monetary easing and Europe back on the front pages following the Cyprus fiasco.

Credit Suisse says gold is unlikely to return to its September 2011 record of $1,921, while Barclays and Societe Generale say the bull market has, or is close to, peaking.

The IMF predicts global growth of 3.5 percent in 2013.

Assets in gold ETPs reached an almost 7-month low of 2,452.2 tons on March 20. The US Mint sold 36,500 ounces of American Eagle gold coins so far in March versus 80,500 for February and 150,000 in January.

Commerzbank say it’s too early to call an end of the bull market due to low interest rates, currency devaluation and gold purchases by central banks. The WGC say nations added the most reserves in 2012 since 1964.

Filip Petersson at SEB said the current commodity correction as a buying opportunity and expects industrial metals to be the sector with the best potential – the US economy is showing strength and China is stable.

Read the full article at http://www.bloomberg.com/news/2013-03-22/gold-seen-extending-rebound-as-cyprus-revives-bulls-commodities.html

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