Gold price climbed higher Tuesday morning, advancing $41.25 to $1,792 per ounce

The gold price climbed higher Tuesday morning, advancing $41.25 to $1,792 per ounce. The price of gold moved to a six week high as Italian 10-year bond yields spiked through 6.5%. Greek Prime Minister George Papandreou agreed to step down yesterday, paving the way for a national unity government. Stock markets came under pressure Monday as Italian Prime Minister Berlusconi came under pressure to resign amid a growing lack of confidence in his nation’s ability to service its debt load at current interest rates. S&P 500 futures fell 7.80 to 1243.30.

In light of these developments, long-time gold investor John Hathaway asserted in an interview with King World News that the outlook for the gold price remains particularly bright. “People got shaken out when gold went below $1,600. The price of gold has come right back up and it’s left all of those investors as sold out bulls, so it’s great action…The ones that were enthusiastic when gold was $1,900 are nowhere to be seen now. A lot of that money is now on the sidelines and I think it’s fantastic.”

Hathaway, portfolio manager of the Tocqueville Gold Fund, went on to say that “We saw Europe cut interest rates…That probably won’t be enough, they will have to do that some more. Europe is slowing down and that’s kind of scary. It just seems to me that you have the ingredients for a new high in gold.”

“Bernanke has itchy trigger fingers on the next quantitative easing,” Hathaway added. “He didn’t want to say it in so many words, but most of the commentary seems to anticipate another round of quantitative easing. So things look great for gold.”

As for gold equities, Hathaway noted that “These companies are making a huge amount of money and the stocks are going up and the analysts are saying, ‘Big deal.’ Like I said, there is no enthusiasm and I think that’s great.”

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