"When Lee asked me about the latest moves in gold, I told him the speed of the prior run still stood out. The metal sprinted toward the 4100 and 4200 range so quickly that many investors avoided buying simply because they felt they were chasing. Then the selling pressure hit. Gold dropped nearly twenty percent, falling back into the high 3900s before buyers stepped in again."
"Once Washington signaled that a government shutdown might be avoided, the tone in the market shifted. Investors who had been waiting for a pullback finally had an entry point. Lee reminded me that central banks in China, Japan and other regions buy gold consistently, often daily. That buying creates a natural floor when prices dip, and it helped gold recover back above 4100."
"Lee walked through the forecasts. UBS is looking for a move back to 4200 in the near term. Goldman Sachs and Bank of America see the possibility of 5000 dollars by the end of next year. Those calls assume ongoing geopolitical tension and steady central bank demand, which both of us agreed seem plausible given the current environment. We also talked about the alternatives to physical gold."
Gold surged rapidly into the 4100–4200 range, prompting many investors to avoid buying, then fell nearly 20% into the high 3900s before buyers returned. Signs that a U.S. government shutdown might be avoided shifted market tone, allowing pullback-seeking investors to enter. Daily purchases by central banks in China, Japan and elsewhere provide a recurring support floor and helped lift prices back above 4100. UBS expects a near-term move to 4200. Goldman Sachs and Bank of America project a potential rise to 5000 by year-end next year, assuming continued geopolitical tensions and steady central-bank demand. Investors can use GGN or GLD for exposure without bullion storage.
Read at 24/7 Wall St.
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