Gold Surges to $930; “Rocket Shot” to $1000?

January 28, 2008 at 11:11 am  ·  Category: Federal Reserve, Gold, Inflation

“Expectations of further Fed cuts continue to support the precious metal, and traders feel bullion can break the $950 mark in coming weeks.  Some even suggest that gold may jump as high as $1000 an ounce in a couple of months.”

Action Economics

“…. anything can happen from here, including a rocket shot to $1000 over the next few weeks, which I consider to be a very good probability.  We already have lift off.  Get ready for the rocket shot.”

James Turk, Freemarket Gold & Money Report

Gold is just crushing on expectations of a 50 point rate cut and the consequent weakness in the dollar.

This amounts to a 43% move since the Fed first cut rates on Thursday August 16th (Gold Charts).

I’m not sure about the timing but $1000 gold seems all but certain at this point – especially once the European Central Bank starts cutting rates.

Disclosure: Top Gun is long of gold in the form of the Gold ETF (GLD).

Posted by Greg Feirman  ·  Trackback URL  ·  Link
 

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