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.”
This article was posted: Monday, December 15, 2008 at 5:19 am