Monday, Dec 15, 2008
Gold has reached a good base of $730 and it looks likely to break out of that negative trend, Robin Griffiths, technical analyst at Cazenove Capital, told CNBC.
Griffiths sees the precious metal heading toward $1,500 in the next 12 months.
Gold has been in a prime uptrend for a couple of years, but for the last six months it has been falling back from $1,000 to $730.
Griffiths also noted that the Nikkei 225 Average found a base recently, and said the index is due to rally to 10,500 before the end of 2008.
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The British pound is likely to reach parity with the euro by the end of the year, while the pound likely to go down to $1.40 against the dollar, Griffiths predicted.
“The currencies that look very strong are partly the euro, but also the yen,” Griffiths said.
“Cash doesn’t give you a return, at the moment not one worth having, so the negative about gold has gone away,” he said. “It does traditionally preserve value both in panicky inflationary times and deflationary times.”