Gold: A Genuine Bull Market with a Continuing Upside

Source: Mineweb.com  (9/14/07)

In an analysis of the outlook for gold and other precious metals, the authoritative Bank Credit Analyst has identified several positive factors indicating that gold's bull trend will continue.


During the past ten days, gold bullion in dollar terms has broken out of trading ranges and held, so far, above $700 an ounce. Gold stocks, however, have considerably lagged the ascendancy of bullion prices, suggesting that investors are continuing to absorb the veracity of the apparent changes in gold fundamentals.

In an analysis of the outlook for gold and other precious metals, the authoritative Bank Credit Analyst has identified several positive factors indicating that gold's bull trend will continue. For one, the precious metals complex, and not just gold, is seen as sniffing out more plentiful liquidity conditions.

Real interest rates are set to fall in the US, both in absolute terms and relative to the rest of the world, in the wake of the US housing debacle. This is seen as spurring a "flood of liquidity" likely to drive up gold prices as investors and central banks search for alternatives to paper currencies.

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