LONDON (Commodity Online): Will Silver price skyrocket to $85 per ounce? Can Gold surge to $5200 per ounce? Gold and silver prices at these astronomical levels may seem unrealistic and without fundamentals. But renowned technical analyst on bullion Louise Yamada says the hot precious metals gold and silver could go to these whopping price levels in the years to come.
In an interview to King World News (KWN), Yamada said on silver: “We hit part of our silver targets at $50, (expect) $65, even $80, $85 over time. We had an 88% rally in a very short period of time from January and a one third retracement, 34% down, so that was pretty normal. We saw some support at $33 and would loved to have seen it go sideways a little bit longer to be honest with you.”
On gold, Yamada’s speculation went like this: “Gold continues to be in an uptrend in our work. You had a little bit of a consolidation, seasonality would suggest a rise into the fall. The primary support level remains at $1,475 … Our next target is $2,000, and we did a gold special in our last piece that suggested from a very long-term perspective … we could see $5,200 on gold.”
Yamada is known as one of the world’s finest technical analysts on commodities and equities. She began her career as director and head of technical research at Smith Barney. Yamada now leads her own global research company called Louis Yamada Technical Research Advisors.
Does Yamada expect gold and silver prices to touch $5200 and $85 respectively this year? No, she did not offer a timeframe for her price targets on gold and silver prices, but said her next target for silver is for a double “over time” from the $40 print.
“I think that one of the observations that one has to take into consideration is that with each of the Euro financial crises and our own financial crisis in 2008 to 2009, the dollar has rallied less!” she said.
“In other words you had a rally in 2009 that carried 25%,” Yamada explained. “Then, in early 2010, the rally was only 19%. And the second one in 2010 was only 7%. And this time, you haven’t even seen 7% with the crisis that has evolved. So that suggests to us that it (the dollar) is becoming less and less considered a really safe haven.”
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