Regal Group International: Analysts expect gold to continue bullishly and to peak in 2011.

Nov. 8, 2010 - PRLog -- According to the results of a recent poll conducted by Reuters, gold is set to continue its bull run for another six months, corresponding to the planned duration of the U.S. Federal Reserve’s recent monetary stimulus package.

Regal Group International has learned that two out three respondents to the survey believed that the gold price was likely to peak somewhere between $1,400 and $1,500an ounce, with most analysts expecting prices to top out in the first half of 2011.

The Fed’s quantitative easing package has strengthened arguments for investors to hang on to gold as it pushes the U.S. dollar firmly onto a downward path and increases the risk of inflation.

"QE devaluates the currency, so gold...and almost all commodities will be beneficiaries as people start to switch from financial assets to commodities, something they feel more tangible as the money printing continues," Regal Group International believes Standard & Poor's Equities and Metals analyst Leo Larkin was recently quoted as saying.


Gold’s rally is expected to roughly coincide with the Fed’s proposed time frame and many analysts are saying that the Fed will be left with little choice but to release additional rounds of funding in order to prevent the U.S. economy sliding back into recession.


"The underpinning here is that the Fed is stating very openly it is more worried about deflation than it is about inflation," Frank McGhee, head precious metals trader at Integrated Brokerage Services told Regal Group International sources, adding that gold should benefit from this round of QE for six months.


The U.S. central bank recently committed to buying around $75 billion of longer-term Treasury bonds per month until the end of June 2011, and has also said that these steps may be open for adjustments further along.


Since the Federal Reserve’s announcement the spot gold price has increased by as much as 6% and has traded at an all time record high of $1,397.8 per ounce, Regal Group International research has shown.

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