“This is very healthy for further gains in 2012, especially if we hold above $1,500. We could see the market trade in a range through mid summer,” John Person, president of NationalFutures, said in the article. Person predicts gold to peak between $2,200-$2,400 by late October 2012.
Over the long-term, gold bulls point to the loose monetary policies of the Federal Resrve and European Central Bank that will eventually debase their currencies and contribute to the attractiveness of gold.
“$2,000 gold can be delayed in the short term, but the fundamentals will carry it there sooner or later,” Mladjenovic added. “2012 has very bullish conditions so higher gold prices are more plausible.”
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Full disclosure: Tom Lydon’s clients own GLD.
Max Chen contributed to this article.