Major World Bank Eyes $2K Gold Futures

Here comes talk of the next wave higher for gold futures.  Just today, a London-based precious metals trader for Deutsche Bank publicly stated his opinion of gold futures rallying to an extended record of above $2,000 per ounce into next year.  He believes centrals banks will continue to pump cash into stimulus to sustain a recovery.

Currencies are expected to be negatively affected by Europe’s debt crisis, and inflation is expected to soar, so governments and central banks are taking necessary steps buy obtaining gold bullion assets to thwart any fallout.  Actual gold bullion is on its 12th annual gain this year, and just last week holdings in gold-backed ETF’s became the largest ever.

Fear of a weaker dollar has traders looking to the gold market for a potential safe haven for investment.  Adding credence to the bullish side of the market is continued strong demand out of China and India for the (precious) metal,” said Barb Levy, chief director for Futures & Options Xecution’s futures division in Chicago, regarding the current gold futures situation.

Gold futures have been in a down-trend since mid-October, but has found strength at lower prices since.  I am looking for signs of a trend reversal to go long gold futures for the next leg up.

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