According to expert John Taylor, gold will extend its rally to $1,900 an ounce by October. The metal is also reporting to be up 12% so far this year and set for an 11th straight annual gain.
Wednesday, July 20, 2011
Editor: John Deane
July 20 (Bloomberg) -- Gold's rally to a record this month will extend to $1,900 an ounce by October, according to John Taylor, founder of FX Concepts LLC in New York, the world's largest currency hedge fund.
Bullion touched a record $1,610.10 in London yesterday, and this week climbed to all-time highs priced in euros and pounds. The metal is beating this year's gains in global equities, commodities and Treasuries and holdings in bullion-backed exchange-traded products increased to the most ever.
"Gold is going up to $1,900 by October, that's the next reasonable stopping place after $1,600," Taylor, whose firm manages $8 billion, said today in an interview in London. Prices may then slide to $1,100 as economic growth slows, he said.
The metal is up 12 percent this year and set for an 11th straight annual gain, the longest winning streak since at least 1920, as debt concerns in Europe and the U.S. boosted demand for a protection of wealth. Investors' holdings in ETPs jumped to 2,120.5 metric tons on July 18, more than all but four central banks, data compiled by Bloomberg show.
Gold for immediate delivery traded at $1,586.60 an ounce by 3:15 p.m. in London today. Euro-area leaders meet tomorrow to try to prevent the spread of the region's debt crisis.
Whether gold reaches $1,900 "depends a little bit on the Europeans stitching together a deal" at tomorrow's summit, Taylor said in a separate interview on Bloomberg Television with Maryam Nemazee.
--Editor: John Deane
To see original article CLICK HERE