Indicator Shows Gold Could Finally Be Bottoming

By: Michael J. Carr of Street Authority

Stocks moved up the fourth week in a row and have delivered a large gain in the first 10 months of the year. For now, there is no reason to expect a reversal in the trend.

Stocks Continue Setting New Highs SPDR SP 500 (NYSE: SPY) added another 0.15% last week and is now up 25.55% for the year, including dividends.

To put this performance into perspective, we can review data for the SP 500 index going back to 1928. This year's performance would be the 22nd best year out of 86. After such a strong performance, many investors expect a decline, and the question becomes, "How bad will the decline be?" Continue reading "Indicator Shows Gold Could Finally Be Bottoming"

Goldman Sachs' Ian Preston Surveys the Gold ETF vs Equity Battleground

The Gold Report: Your recent commodity price research shows a gold price of around $1,811/ounce (oz) for 2013. Could you talk with us about how some of the macroeconomic issues influence that forecast?

Ian Preston: When we look at gold, we don't have in mind a specific supply/demand balance going forward. It's easy enough to see the supply side. In trying to forecast a price for gold, we tend to run out a 4% per annum contango from the current gold price until we think U.S. interest rate policy will reverse and rates will start to climb. That stage just keeps on moving outas it has with Quantitative Easing (QE) 3.

"If accommodative fiscal policies continue globally, gold could go significantly higher."

We look at the gold price to forecast earnings, and over the next 6 to 12 months, we'd expect $1,650/oz at the lower end and, if it breaks through, $1,8501,900/oz at the upper end. If accommodative fiscal policies continue globally, it could go significantly higher. But bear in mind that as equity analysts we're trying to forecast earnings, and to do so we want to be as close as possible to where the gold price will be for the next three to six months, even if the range is quite broad. Continue reading "Goldman Sachs' Ian Preston Surveys the Gold ETF vs Equity Battleground"

5 Ways To Tackle The Gold Market

Without a doubt the most polarizing and talked about commodity is the precious metal, GOLD. For some traders it encompasses their entire portfolio, but for others it can seem quite daunting.

Next week (December 2nd @ 4PM EST/9PM GMT) our own gold bug and MarketClub co-founder, Adam Hewison will demystify this popular commodity and analyze some of the most popular ways to trade this metal.

Whether you're a veteran gold bug or looking to start trading this popular precious metal, this webinar is for you. Adam will be looking at some of the most commonly asked questions like: Continue reading "5 Ways To Tackle The Gold Market"