Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

Gold heading toward $1,400 as bull run commences

The Gold Report, The Gold Report
0 Comments| July 6, 2016

{{labelSign}}  Favorites
{{errorMessage}}

Source: The Gold Report (7/6/16)
https://www.streetwisereports.com/pub/na/17031

Gold's post-Brexit vote surge continues unabated, with Bloomberg reporting today that the price of the safe haven commodity has risen for six consecutive days.

Click to enlarge

UBS speculates that the commodity could reach $1,400/ounce "in the short term," with prices averaging $1,340 in the second half of this year, according to Bloomberg. The price per ounce reached its highest point since March 2014 today (July 6) at $1,374/ounce before retreating below $1,370/ounce.

Gold may be in "the early stages of a bull run," Joni Teves, a UBS analyst, told Bloomberg.

The story and an accompanying interview with Robin Tsui of State Street Gloval Advisors state that investors are flooding into both physical gold and gold ETFs. Silver is also running up, and has topped $20/ounce. Tsui foresees the trend will continue for the "foreseeable future."

These days strategic investors, rather than retail investors, are driving the market, Tsui said. These investors believe gold "has started or resumed its important role as a strategic asset in portfolios."

There is no bubble in precious metals plays, according to Tsui. He also noted that only 1% of investors hold gold, but if that were to increase to 2% or 5%, upside to the gold price would be "substantial and significant."

Factors affecting the price run of precious metals commodities include Britain's historic vote to leave the European Union and yesterday's decision by the Bank of England to ease capital requirements for banks. As reported by the BBC, financial risks anticipated to follow the Brexit vote "have begun to crystallise. The current outlook for UK financial stability is challenging." The vote also has “eroded prospects for a U.S. interest-rate increase this year."

Want to read more Gold Report articles like this? Sign up for our free e-newsletter, and you'll learn when new articles have been published. To see a list of recent interviews with industry analysts and commentators, visit our Streetwise Interviews page.

Disclosure:
1) Tracy Salcedo compiled this article for Streetwise Reports LLC, and is an employee of Streetwise Reports.
2) The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer.
4) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their families are prohibited from making purchases and/or sales of those securities in the open market or otherwise during the up-to-four-week interval from the time of the interview until after it publishes.

Streetwise - The Gold Report is Copyright © 2016 by Streetwise Reports LLC. All rights are reserved. Streetwise Reports LLC hereby grants an unrestricted license to use or disseminate this copyrighted material (i) only in whole (and always including this disclaimer), but (ii) never in part.

Streetwise Reports LLC does not guarantee the accuracy or thoroughness of the information reported.

Streetwise Reports LLC receives a fee from companies that are listed on the home page in the In This Issue section. Their sponsor pages may be considered advertising for the purposes of 18 U.S.C. 1734.

Participating companies provide the logos used in The Gold Report. These logos are trademarks and are the property of the individual companies.

101 Second St., Suite 110
Petaluma, CA 94952

Tel.: (707) 981-8999
Fax: (707) 773-5020
Email: info@streetwisereports.com


{{labelSign}}  Favorites
{{errorMessage}}

Get the latest news and updates from Stockhouse on social media

Follow STOCKHOUSE Today

Featured Company