"The $2,000 target has moved further away, but it still holds," First Asset exec tells Bloomberg
Gold is stuck in the longest slump in a decade as investors shun bullion for the dollar and bonds, just seven months after Bank of America Corp. said Europe's debt crisis would send prices to a record $2,000 an ounce.
The bank was joined by Goldman Sachs Group Inc., Morgan Stanley and Barclays Plc in urging investors to buy in December and January. Now, after
gold fell 10 percent in a four-month slide through May, they say prices will rebound this year or next as the Federal Reserve shores up the world's biggest economy by easing monetary policy and devaluing the dollar.
Billionaire George Soros bought more in the first quarter and hedge-fund manager John Paulson held on to the biggest stake in ... the largest exchange-traded product backed by
bullion, Securities and Exchange Commission filings show. Some investors are refusing to capitulate even after failed elections in Greece drove the euro to a two-year low against the dollar and
gold slumped as much as 21 percent in December from the record $1,923.70 set in September.
"The $2,000 target has moved further away, but it still holds," said John Stephenson, who helps manage $2.7 billion at First Asset Investment Management Inc. in Toronto and predicted in November that prices would reach $2,500 in the next several months. "We will see some easing, and that will push
gold higher, but the reality is that we are on hold until the outcome of the Greece elections."
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