Monday, September 20, 2010

Barclays (NYSE:BCS) Sees Gold Remaining Strong in Fourth Quarter

With fundamentals expected to remain in place, Barclays (NYSE:BCS) believes gold will continue to perform strongly in the fourth quarter.

Barclays said “we maintain our view for the fourth quarter of this year to be the strongest quarter on record yet for gold prices, with downside corrections finding support from the seasonally strong period for fabrication demand with the forthcoming wedding and festival season in key gold-consuming countries.”

Several reasons were cited by the financial firm, including expected continuation of quantitative easing, ongoing low interest rates, and gold miners continuing to abandon their hedge books.

Gold broke all-time records several times last week, and some are saying it could hit $1,300 this week if quantitative easing is mentioned by the Federal Reserve.

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