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Top Analyst Sees Gold Hitting $2,400 in Year and Continuing to Be Bullish

May 10, 2012214 view(s)

A recent news article published by King World News quoted a top technical analyst from Citibank, Tom Fitzpatrick, as saying that gold is projected to make a move to as high as $2,400 within the coming 12 months.

"We’ve already iterated a target in the more medium to long-term of $3,400, and over the next twelve months as high as $2,400," said Fitzpatrick during the interview with King World News.

The analyst went on to relay his thoughts on how gold relates to the dollar. In Fitzpatrick's view, the dollar also faces a bright future in the coming months. He stated that over the last decade, gold has done well against a number of other paper currencies. The dollar, he said, has been going through a downtrend over the past 10 years and that is something he expects is going to change.

"We expect that gold will continue to go up against the dollar, but, over time, we expect it will go up even more against a currency like the Euro," he said.

With a career that spans nearly 30 years as a key analyst at Citibank, Fitzpatrick is a voice those in the financial world trust. He pointed out that since 2000, gold has been relatively steady in rising and never moved very far below its 55-week moving average, something which can not be said for all commodities. Fitzpatrick was not at all shy about stating how crucial he believes the role that gold continues to play in the world today.

"Also, in this dynamic where we are seeing a lot of paper printing, a lot of money printing and monetary experiments, gold is reverting to its true safe-haven status, which is first and foremost as a hard currency," he told the interviewer.

This is very good news for those who choose to invest in gold because it means that as the prices rise, the value of their investment rises. Fitzpatrick mentioned gold prices eventually hitting $3,400 and if that comes to pass as he's predicting, that would be an almost $2,000 per ounce rise. While sources will vary in their focus on gold's potential to rise in price, it is always reassuring to see an analyst from a global bank that manages over $1 trillion in assets state that gold is such a solid choice for those who hold a precious metals portfolio.

Keeping in mind what Fitzpatrick mentioned regarding the price of gold as it relates to the price of paper currencies, such as the dollar and the euro, could help investors see how gold's value is not only dependent on the value of paper currencies. As the analyst pointed out, it is possible for gold to fair well even when a currency is strong, and therefore its value is not nearly so dependent upon a failing dollar or euro, even though such a connection clearly does exist in some cases.

The coming months should do a lot to prove whether Fitzpatrick's prediction comes to pass, as so many investors are hoping it will.

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