Reiterating Our Call For $1,375 Gold This Year
By: John J. Licata,
Editor, The Commodity Chronicles
Despite the ups and downs in the present global financial marketplace, Blue Phoenix’s 2009 call for gold prices to hit the $1,200 mark in 2009 was achieved (gold actually hit a high of $1,227 on December 3rd). Today we are reiterating our call for the yellow metal to hit $1,375 per troy ounce in 2010.

Reasons to support our thesis include heightened global sovereign debt default concern (thanks to Greece and now possibly Spain and Portugal—oh yeah the “golden” state of California too); skepticism that Helicopter Ben will raise interest rates before Q410 despite slight optimism by the bond market; escalating unemployment in the U.S. (sorry Mr. President, unemployment is still near 10%); higher energy prices hurting consumers ($85pbl oil will only delay the global economic recovery); continued unrest in the Middle East (Israeli/Iranian tensions growing; sanctions against Iran by the U.N. would be economic suicide for many countries); the upcoming November Congressional election could wreak havoc on Washington’s economic policies and lastly the potential of inflationary pressure to rise sharply in the back half of the new year is real. Wow—now that’s a mouthful!