The yellow metal was on a tear, surging another 4.9% in September after gaining 5.7% in August. But the market is now quiet, with low volume as easing expectations have been priced-in, particularly in the aftermath of Mario Draghi’s verbal intervention and ahead of the last FOMC meeting where Bernanke unleashed QE3. Still, the yellow metal has room to rise in what’s left of 2012, possibly to $2,000 according to Nomura. Sentiment remains strong, central bankers have pledged to inject liquidity left, right, and center, and the specter of the fiscal cliff could, like in the summer of 2011, give gold another boost.
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