Indicators suggest gold poised for big breakout by end Q3

5 August 2009  Mineweb

The slow trading months of summer are usually a time when gold prices decline, but economic analysts at Blanchard and Company, America's largest precious metals investment firm, say that indicators this year have them believing the metal is poised for a big breakout by the end of the third quarter.

Specifically, inflation, possible hyper-inflation, dollar weakness, and supply/demand and investor demand fundamentals are all positive for the price of gold toward the end of the summer, says Donald W. Doyle, Chairman and CEO of Blanchard and Company.

While gold remains range bound, it does so at levels above $900 per ounce, which Doyle says he sees as a springboard to greater price gains, and even new record highs, through the remainder of the year - and beyond.

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