Andrew Su
Compass Global Markets
GOLD has held up relatively well overnight given the strong show of support for tapering from the latest Federal Reserve Minutes and this is an extremely positive sign for the metal and we now expect the upward momentum to continue and to push gold above $1,400 within the next week. A few members had even expressed their view that tapering might be needed even sooner than expected. However, investors should not be too quick to rush into believing that tapering is inevitable this year. The language has not changed. The economy must improve before tapering is considered and although 65% of economists surveyed by the major news services believe that tapering will occur in September, we are still yet to be convinced. So we have even more reason to maintain our bullish short and medium term outlook for gold. Gold mine takeovers and acquisitions by producers based in China and Hong Kong have risen to an all time high this year. We are currently working on an investment by a Chinese entity into a Mali based gold company. Demand in China has exploded and consumption is set to overtake India this year.
Compass Direction
Short-Term Medium-Term
BULLISH BULLISH
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