Gold rising back above $1,900 per ounce by the end of this year - Weinberg say

The gold price stabilized near $1,660 per ounce Wednesday morning as the yellow metal consolidated following four consecutive trading days of gains.  The price of gold remained in a tight range between $1,654 and $1,663 in overnight trading, while the U.S. dollar fell 0.3% against a collection of foreign currencies.

Despite yesterday’s gold price rally, the yellow metal remains near the lower end of the trading range it has occupied for the large majority of this year.  Commenting on the outlook for the price of gold, Commerzbank analyst Eugene Weinberg stated in a CNBC interview that “I think that for another couple of months gold is likely to stay under pressure.”

Weinberg attributed his cautious outlook to the view that Federal Reserve is unlikely to launch a third round of quantitative easing (QE3) anytime soon.  “I am pretty confident that for the time being this medium-term trend is likely to stay downward,” he added, “and we are likely even to see prices below $1,600 short term.”
However, over the longer-term Weinberg maintained his bullish stance on the yellow metal.  “I think that buying into dips will be a good game this year for bargain hunters in the summer,” he asserted.  “By the end of the year we do expect another record high for gold because we do expect more monetary easing, not just from the Fed but also by the ECB and also by the Asian central banks.”

Weinberg went on to say that he sees the price of gold rising back above $1,900 per ounce by the end of this year.  While he declined to provide a specific gold price target, he contended that the extent of the climb will be based in large part on the size of the central banks’ easing measures.”

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