Sell Gold; target USD 1550/oz: Maximus Securities
Maximus Securities has come out with its technical report on Gold. The research firm, expects an outflow from the former to the latter. The outflow that commenced gradually will soon turn into a deluge with investors exiting their positions in gold.
January 04, 2013 / 20:15 IST
Maximus Securities has come out with its technical report on Gold. The research firm, expects an outflow from the former to the latter. The outflow that commenced gradually will soon turn into a deluge with investors exiting their positions in gold.
On the 23rd of October’12, we had published our first Gold report on the World Gold price. In the report we had conveyed our bearish views on the precious metal. We had initiated a short term sell at $1,726/oz with a target of $1,690/oz, which was soon achieved. We had also conveyed our bearish outlook for the near and medium term price of gold.Now with the uncertainty regarding the US fiscal cliff behind us, we see a gradual up tick in the US economy as well as bottoming-out of the European crisis. With the return on gold turning negative and the return on government treasury paper looking attractive, we expect an outflow from the former to the latter. The outflow that commenced gradually will soon turn into a deluge with investors exiting their positions in gold.Near Term: We see the price of gold in the near term breaching the 1,600 USD mark and pausing at around $1,550/oz, before commencing its further fall.Medium Term: As the momentum gathers pace, we also see the breaching of 1,400 USD mark. Our target for the next 18 months would be $1,325/oz. We do not see the price breaching $1,000/oz level in the downslide.From levels of $ 1,250-1,300/oz we could see some pull back, which could signify the end of the downslide amidst chaos and fear of further downside.Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.To read the full report / chart click on the attachment 
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