NEW YORK (Scrap Monster): Prospects for silver and gold are looking promising, said TDS Securities in a weekly commodities report.
According to TDS, the hedge funds and other leveraged speculators have been jumping back into gold due to growing expectations of U.S. monetary easing, news last week that the European Central Bank committed to buy European sovereign debt and Chinese stimulus.
Analysts with TDS stated that, "in only two weeks, gold net longs have jumped some 40%. As long as key technical indicators, such as the 200-day moving average (currently at $1,642/oz) are not breached, there is little danger that these longs will be liquidated any time soon."
"In fact, given that it is likely we will see more Fed accommodation this week, specs are likely to add to their net long positions. We expect this to happen and see gold reaching north of $1,800/oz by year end," TDS concluded.
Global gold prices are trading higher and hit a fresh six-month high on Wednesday morning, following a German court ruling that affirmed a European Union bailout plan.
December gold last traded up $9.80 at $1,744.80 an ounce on the Comex division of the New York Mercantile Exchange. Spot gold was last quoted up $6.90 an ounce at $1,742.75. December Comex silver last traded up $0.359 at $33.925 an ounce.
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