Frederic Panizzutti Market 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.

We see it testing the high around $572, but there is a willingness in the market to go to $580.

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 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.

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.