Deutsche Bank Bullish on Gold as Soros Pares Bet
Source: Bloomberg, Rodrigo Orihuela (5/10/11)
"Gold could reach $2,000 an ounce in the next eight months."
Gold may surge a further 30% by January as investors seek to protect themselves from "economic uncertainty," according to Deutsche Bank AG.
"I'm bullish on gold, despite its current levels," said Deutsche Bank Managing Director for cross-commodity trading Hal Lehr in an interview in Buenos Aires. "It could reach $2,000 an ounce in the next eight months."
Investors, including George Soros and John Paulson, invested in gold as the metal surged over the past year amid a sovereign debt crisis in Europe, economic turmoil in the U.S. and civil unrest in the Middle East. This month's record $1,577.57 an ounce was a sixfold gain since the precious metal's low in August 1999.
Gold fell 1.6% on May 4 after The Wall Street Journal reported that Soros Fund Management LLC sold precious metal assets. Soros' fund held shares in the SPDR Gold Trust, the biggest exchange traded product backed by gold, and the iShares Gold Trust at the end of 2010, U.S. Securities and Exchange Commission filings show.
Gold rose for a third day in New York today as concern about Europe's debt woes spurred demand for precious metals as a protection of wealth. Standard & Poor's yesterday downgraded Greece's credit rating for the fourth time since April 2010. Gold for June delivery rose $13.70, or 0.91%, to close at $1,516.9 an ounce at 1:30 p.m. on the COMEX in New York.