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Gold Should Break $1,600, Silver Near $50 by Year End –GFMS’ Newman

June 14, 2011 Comments off

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Gold should trade to just over $1,600 an ounce by the end of 2011 and silver should be flirting with $50 an ounce as governments will need to maintain a loose monetary policy despite the phasing out of stimulus packages in the U.S., according to the director of a major research firm.

Philip Newman, research director of GFMS, said in an interview on the sidelines of the International Precious Metals Institute’s Precious Metals Conference here there may be too much focus in the markets on the second quantitative easing versus a possible third program.

“I think irrespective if there is no QE3 that comes into the market, the U.S. governments and all other governments frankly, in a sense, still have to maintain fairly loose monetary policy given how slow or how stubborn the rise in GDP growth has been and continues to be,” Newman said.

He said that even though at times there might be a healthy increase in GDP growth, the underlying economy still has unemployment rates that are still stubbornly high.

“So, if you have that background then, the outlook for inflation remains fairly Read more…