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Here’s a bullish call on gold.Citi technical analyst Tom Fitzpatrick spoke with King World News today:
…We’ve done that again here, and the present pattern we look at is setup similarly to that of 2006. In 2006 we had a similar type of consolidation and sideways moving pattern, which eventually gave way to a significant push to the topside. We believe the same thing is happening again here.
We’ve already iterated a target in the more medium to long-term of $3,400, and over the next twelve months as high as $2,400. We believe gold is now setup, with a bullish weekly reversal last week, to make its next move higher.
Unlike most gold bulls, Fitzpatrick is also bullish on the dollar.
…The way we look at that is while there was a tendency to look at gold as a dollar view, the fact is that over the course of the last 10 years gold has been pretty much going up against all paper currencies.
Gold happens to have been going up more against the dollar because the dollar in that time period has essentially been in a downtrend. Our scenario is one where you might see the dollar and the euro switch places.
We expect that gold will continue to go up against the dollar, but, over time, we expect it will go up even more against a currency like the euro…
Fitzpatrick’s call is much more bullish than the one taken by Citi’s Precious Metals team. From their recent Q2 Commodities Strategy book:
Our new forecast revises up 2012 gold prices to about $1,720/t oz. but revises down 2013 prices to $1,835/t oz.