Gold Prices Not In A Bubble – Deutsche Bank

28 September 2010, 4:02 p.m.
By Kitco News
http://www.kitco.com/

In its commodities quarterly report released Tuesday, Deutsche Bank said while "market concerns are focusing on the magnitude and duration of the gold price rally," values would need to move above $1,455 to be considered extreme in real terms. They said the accommodations the Federal Reserve may make to prop up the U.S. economy could mean more quantitative easing by the next Federal Open Market Committee meeting in November. Combine this with seasonal weakness for the U.S. dollar in the final four weeks of the year, and further gains for the precious metals complex are possible.

The bank slightly lowered its 2010 average price forecast for gold by 2.8% from its previous estimate to $1,211, but did not say why. It maintained its 2011 price target of $1,450.

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