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Fed’s ‘QE-Infinity’ Will Push Gold Up to $2,400: Pro

Posted By admin On September 18, 2012 @ 11:30 am In Featured Stories,Tile | Comments Disabled

John Melloy
CNBC [1]
September 18, 2012

In one of the most bullish gold calls since the Federal Reserve announced a new round of easing last week, one strategist sees a 36 percent jump in the metal’s price, to $2,400 an ounce, by the end of 2014.

“The new target reflects our view that the Fed will maintain mortgage purchases until the end of 2014 and will move to buy Treasuries following the end of Operation Twist this coming December,” wrote Francisco Blanch, a global investment strategist with Bank of America Merrill Lynch, in a note to clients Tuesday.

“Given the new open-ended nature of QE3, the upward pressure on gold prices should continue until employment is strong enough to require a change in policy,” Blanch added. “In our view, this is unlikely to happen until the end of 2014.”

Last week, the Federal Reserve announced its third round of stimulus since the financial crisis, saying it would buy $40 billion in mortgage-backed securities each month.

Full story here. [1]


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URLs in this post:

[1] CNBC: http://www.cnbc.com/id/49072875

[2] Gold Set to Break $1,800 Barrier On Endless QE Inflation Fears: http://www.prisonplanet.com/gold-set-to-break-1800-barrier-on-endless-qe-inflation-fears.html

[3] Top Macquarie Strategist: Gold Is A Dangerous Bubble… And Prices Could Still Grow Many Fold From Here: http://www.prisonplanet.com/top-macquarie-strategist-gold-is-a-dangerous-bubble-and-prices-could-still-grow-many-fold-from-here.html

[4] Gold Over EUR 1,300 – On Way to ‘Infinity’ on Eurozone Contagion?: http://www.prisonplanet.com/gold-over-eur-1300-on-way-to-%e2%80%98infinity%e2%80%99-on-eurozone-contagion.html

[5] More money, less Gold to push gold price to $2000: http://www.prisonplanet.com/more-money-less-gold-to-push-gold-price-to-2000.html

[6] Ron Paul: Dollar Will Collapse, Gold Will “Go To Infinity”: http://www.prisonplanet.com/ron-paul-dollar-will-collapse-gold-will-go-to-infinity.html

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