Gold will trade in a narrow range throughout the second quarter of this year but is poised to break higher later in 2014
Posted on April 22, 2014 by Tom Jennemann
Orlando, Florida 22/04/2014 – Gold will trade in a narrow range throughout the second quarter of this year but is poised to break higher later in 2014 when cracks start to appear in the US economic recovery, Lear Capital CEO Scott Carter told FastMarkets.
“We’re likely to see better second-quarter US GDP numbers because of pent-up demand from the winter storms. So for the next couple months, I don’t expect gold to move up or down dramatically, unless of course the situation in Ukraine blows up,” Carter said.
“I’m confident that we hit the bottom at $1,180 but, with that said, it will be hard to move out of this $1,280-1,350 area until the second half. However, everything will change when the Fed comes out to slow tapering or sends guidance that economy is weaker than previously thought. That’s when gold will take off,” said Carter, who sees a peak of $1,450 later this year.
The Fed is currently buying agency mortgage-backed securities at a pace of $25 billion per month and longer-term Treasury securities at a pace of $30 billion per month, totalling $55 billion per month. It has cut QE by $10 billion per month at each of the three most recent Federal Open Market Committee meetings. ...