Doug Kass: Gold Briefly Trades Under $1,050 In 2011 (CNBC Video, GLD Chart)

Doug Kass (Seabreeze Parters) believes Gold will be volatile in 2011 and "briefly trades under $1,050 per ounce (-25%), ending the year at roughly between $1,100-1,200 per ounce". $1,000, or $100 on $GLD, is a strong support level. I could see $GLD pulling back to trend support or the 200 day moving average in the near term. Kass gave potential catalysts for weaker Gold: Real interest rates rise, world stock markets surprise to the upside, U.S. Government addresses deficit and GLD is a crowded trade in the hedge fund community.

Tim Seymour mentioned that Central Banks increased their gold reserves by 30-40% YoY. Read "China Should Consider Increasing Gold Reserves, Central Bank Adviser Says" (Bloomberg). See the CNBC Fast Money video after the jump (hat tip


He wrote an article about this prediction at Kass: Two New Surprises for 2011

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