Frederic Panizzutti Gold Quotations

You have many different small factors in this market which have created an environment of insecurity and gold has shown to be the perfect insurance against any type of disruptive event.

Gold is more and more becoming an insurance policy against any type of disruptive risk and most portfolio managers believe that gold is an asset which should not be missed in their portfolios.

Gold in its insurance role in a portfolio attracts ample interest.

The momentum higher in gold continues. The consensus in the market is that gold will trade to between $600/oz and $800/oz in 2006. The asset relocation into gold continues.

There are good reasons to expect gold to keep its momentum on the way higher. If you look at the fundamental reasons that helped gold to move higher last year and this year, I think most of them are still in place.

We expect gold to remain very volatile, trading erratically from time to time and to break over $600/oz during the course of 2006. We would not exclude several short-lived double-digit rallies to surprise the market during the same period.

The market took on some new positions ahead of the Fed. After they raised, as expected, gold came off, but there is support now around $565/566.