$1250/oz target for 2008

"We may find a bit of stickiness around here. But the big round figures are just numbers and sentiment is still very positive towards gold," Ross Norman, a director at TheBullionDesk.com, said.Gold may now need a period of consolidation, but it will soon resume its bull-run towards lifetime highs -- TheBullionDesk forecasts gold to reach a peak at $1,250 an ounce in 2008.Prices have already climbed by 20 percent since the start of the year, but it is still a long way from its real-term peaks. After adjusting for inflation, spot gold exceeded $2,300 an ounce ($850 in nominal terms) in January 1980, according to Lehman Brothers.According to the World Gold Council, the real-term three-year average for gold stands at $1,200 an ounce.The previous spike in 1980 was the direct result of high inflation due to strong oil prices and geopolitical tensions -- the Soviet invasion of Afghanistan and the impact of the Iranian revolution.

Gold reaches out for $1,000/oz, if it makes it what will be the next long term objective?

London, 13 March 2008 - In recent days and weeks gold has show indecision as to whether it was set to correct having failed to reach the $1,000/oz level or whether it was still in its up mode. Today’s move into new high ground suggests the latter.With equities voting with their feet with the Dow and shares in Asia falling heavily in the past 12 hours, it does look as though fears in the financial markets are growing again. Indeed the dollar is under pressure and as we mentioned yesterday if you take the dollar as a barometer for the US economy then more stormy weather seems to be on the cards.Not surprising this is boosting demand for safe-haven assets, which is gold’s forte. However base metals, oil and other commodities are also being sucked up by investors looking for assets with some real economic value. However, you have to wonder the logic of chasing industrial metal prices to record highs when the cause for the need for safe havens is a deteriorating economic outlook. Indeed the poor outlook is not just confined to the US, concerns are growing that Japan may be heading for recession and if these two power-houses do slow down, then contagion is likely to follow. However this scenario might prove even more bullish for gold as if demand for industrial metals does start to suffer then it may be that we start to see rotation out of industrial commodities into the gold and agricultural commodities.If gold prices hit the $1,000/oz level then we would not be surprised to see prices advance further. Like the move through $850/oz, the previous multi-year high, the act of moving through $1,000/oz may well be seen as removing a barrier and lifting the lid off the market. Indeed it may be seen as another objective reached and one less barrier between it and the inflation adjusted price which is nearer the $2,000/oz level. Other yardsticks used to suggest potential targets include the number barrels of oil 1oz of gold would buy and what the average level of the Dow Jones equated to in ounces of gold. Over the past 30 years 1 oz of gold has bought on average 17 barrels of oil and in the 1980’s the Dow equated to some 5oz of gold. Basis these measures gives a target of $1870/oz using oil as the measure and $2,392/oz using the Dow as the yardstick.

NFP

US Non-Farm Payrolls (Feb) ACTUAL -63,000 Expected 25,000 Previous -17,000Unemployment Rate (Feb) Actaul 4.8% Expected 5% Previous 4.9%Quick ViewThis all important data came out worse than expected which adds weight to those who think the US is already in recession. At face value this is likely to weigh on the base metals and equities, but with expectations running high that the Fed will cut interest rates by up to 75bp the markets might washout the bad news and look forward to bigger rate cuts and possibily even an emergency rate cut. If so then the markets may rise on this data.

GOLD due for correction before it breaks $1000

I See $848 low which is already hitted and $1250 high for 2008 and $976 likely to be average price. Next support might be arround $937 followed by $913 further $890 solid ground and offcoarse owesome $850. But i think if you have cashed your money near $1000 and if waiting for dip then buying in 900-930 range probably be a smart trade as not to miss the $1250 rally. BEST OF LUCK

GOLD TARGET $1250/oz for 2008

Gold likely to rise in the coming session. Gold is benefiting from inflationary pressure and weakening dollar and ongoing geopolitical tensions, buoyant oil prices and credit crisis in the mortgage sector of US. Fed keeps on lowering rates from 5.25% to 3% so far. Expect 2.5% on 18th march 2008 and further by year end up to 2%. Gold likely to hit a high of $1250 in 2008 and low might be $840 and average price $976. <<<>>>