Sources close to Cornerstone Worldwide report that news of the bounce in the price of gold following over-selling last week was greeted by the Asian based wealth management firm as an encouraging sign that the yellow metal has solid support at the $780 level.
Gold has been a resounding “buy” in Cornerstone Worldwide notes to investors for more than 2 years.
Gold futures for December delivery rose $11.30, or 1.4 percent, to $803.40 an ounce at 11:56 a.m. on the Comex division of the NYMEX. The price has fallen 22 percent from a record $1,033.90 reached on March 17.
An unnamed source close to strategists at Cornerstone Worldwide said that the firm expects gold to rise considerably in the long-term as investors come to terms with what the firm has, in the past, dubbed the “800lb inflation gorilla in the room”.
Cornerstone Worldwide are thought to be convinced that the recent strength in the US dollar will flag as credit markets and financial continue to display weakness.
