Tuesday, December 21, 2010

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 pragcap.com).

GLD (SPDR Gold ETF) - Stockcharts.com

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

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