That is quite a statement coming from a "mainstream" investment firm. Wall Street's usual reaction to gold is that it is a barbarous relic whose only use is in jewelry and that no sane investor should put any money into it, even paper gold instruments such as gold ETFs like the SPDR Gold Shares (GLD) and others.
After Bill Gross' bullish words, gold prices were trading a seven-month high on Thursday before falling Friday to finish the week at about $1,776.00 an ounce.
From a technical analysis point of view gold, silver and gold miners have been holding value at key resistance levels. While we could see a 3%-to-5% pullback before they break out and start the next rally overall the outlook for precious metals remains very strong and I put a $2,400 per ounce on gold for 2013. My daily analysis and trade ideas are available at www.TheGoldAndOilGuy.comThis article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV