Monday Morning Market Update: Jan 21

January 21st, 2013 by

With the U.S. markets closed, things are expected to be quiet all around today.  Gold rose in London as Euro stocks hit a 2-year high in light trading. Expectations that the Bank of Japan is going to announce open-ended quantitative easing soon also bolstered markets. Platinum and palladium gave back some of their recent impressive run as profits were taken.

Goldman Sachs reiterated their forecast for gold to hit $1,825 this year, as debt, deficit and budget fights inject uncertainty into the markets and U.S. GDP slows due to increased taxes. “We see current prices as a good entry point to re- establish fresh longs,” analysts Damien Courvalin and Alec Phillips wrote in a Jan. 18 report.

Goldman sees gold prices easing in the last half of the year into an expected pickup in the U.S. economy. This prediction is likely to change depending on how budget negotiations in Washington go.

by David Peterson