Strategist Nenner: Charts Indicate Gold Will Soar to $2,500/oz

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"The bull market for gold will ultimately resume and push the precious metal to $2,500/oz, says independent strategist Charles Nenner."

Money News, Dan Weil

The bull market for gold will ultimately resume and push the precious metal to $2,500 an ounce, says independent strategist Charles Nenner.

He focuses on technical factorsóchart patternsóto produce his forecasts. Gold has dropped 18%, to $1,570, from its record high of $1,924 last September.

Nenner expects the downward move to continue through the end of August or into September, likely to $1,375. "But I think it will go much higher later in the year," he tells Yahoo.

As for stocks, Nenner expects them to bottom next week, with the Standard & Poor's 500 Index descending to 1,280 and perhaps beyond.

Then stocks should rise about 6%, powered by a similar increase in earnings, Nenner says.

He forecasts stocks will stay in trading bands of about 5% for the next two years.

When it comes to bonds, Nenner is a big bear.

"First people lost their shirts on the stock market, then the gold market," he says. "I'm afraid that now they're going to lose a lot of money on their bond positions."

There is no way interest rates will stay near record lows, Nenner says. . .View Full Article

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