2008 Gold Price Prediction

So what about 2008?

In 2008, my minimum target is $925 based upon a continuation of the trends already in place and mentioned above.

We could, however, see a spike to between $975 and $1025 if, in addition,

1. The credit crisis escalates and the central banks are forced to inject substantially more "liquidity" into the financial system than anticipated; or

2. If tensions escalate to red alert status in the Middle East, or if a decline in U.S. presence in Iraq rekindles religious tensions, the bombings and violence in general (with the consequent effect on relations with Iran); or

3. Suppy problems escalate in the physical gold market causing a gold crunch; or

4. If we get another major surprise like we did with the credit crisis in 2007 (Yes, something else could crawl from under the rock);

Note: There could be a sharp mid-year correction in the gold price, if we get a strong run-up from the $810 level in the early months of 2008. However, I believe, in the wake of such a run-up, support is likely to come in the current range or just below. Conversely, we could get an out-of-the-box price spike should we see three or more of the events mentioned above converge with their full ill-effect upon the economy and financial markets. These are indeed dangerous times, more dangerous than at any time since the gold bull market began.




MCXARUN
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