$2,000 Gold by April amid “Continual Growing of Demand”
By jturbin | February 22, 2012 3:42 AM EST
The price of gold is likely to reach a new all-time record nominal high of $2,000 per ounce by April of this year, according to Huntington Asset Advisors’ Peter Sorrentino.
In a recent Bloomberg interview, Sorrentino – a senior fund manager at Huntington – discussed his bullish short-term outlook for the yellow metal.
“Gold had a very substantial run early last year and has gone through a corrective phase,” he noted. ”Some of this we think is attributable to the MF Global debacle. We think that frightened some commodity traders and some investors in commodities and that some institutional money headed for the sidelines after that. But when we look at the amount of U.S. Treasury debt held by our major export partners, we’re beginning to see significant systematic reductions in their Treasury holdings. They’re I think uncomfortable with holding that much of their reserves in dollar-denominated assets.”
Sorrentino went on to say that “We’re continuing to see central bank buying of gold by China. Russia has effectively nationalized all production; all the mines have to sell to the central bank. Venezuela nationalized their mining industry. We’re seeing gold being bought again in India as well as Vietnam and other countries. So there’s a continual growing of demand.”