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$1,800 Gold Bullion by September, Weeden strategist predicts - Wealth Management

March 21,2013


"The physical gold story ... is intact" as central banks buy bullion, Michael Purves tells Bloomberg

$1,800 Gold Bullion by September, Weeden strategist predicts - Wealth Management

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"The way I look at gold is the dichotomy is really between the physical gold trade and the paper gold trade," Weeden & Co. strategist Michael Purves tells Bloomberg in a March 20 interview.

"The physical gold story, if you will, is intact. We see large-scale purchases by central banks. That's continuing apace regardless of what prices you're seeing on the screen. ...

"I think we'll head up to $1,800 by September is my target right now. But I think it's a lot choppier trade than what we've seen over a lot the last several years because you have a lot of people who have come in above this, a lot of people came into QE3 last September, and they've seen nothing but price corrections. We're going to see people sell into rallies and I think it's going to take time to clear out some of that, but I do think that there's no question that the fundamental trends over the longer term are very much, absolutely intact, and that will provide support here."


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