Here is what top Citi analyst Fitzpatrick had to say, along with some powerful charts:  “The gold market is flirting once again with the critical $1,791 level today.  Breaking through this level will be crucial in terms of establishing the momentum for the next leg higher.  If gold can get a weekly close above that level, it really completes this pattern.  This will then open up the target for gold at $2,060.  It could come this year or perhaps in Q1 of next year.

But we believe that in Q1 of next year we could see gold as high as $2,450 to $2,500.  Gold has pushed on this critical $1,791 level for two weeks in a row, and we closed both of those weeks essentially where we opened.  So this is the third week in a row that gold has been assaulting that critical level.

This really does validate the importance of getting a solid weekly close above that area, in order to establish the next trending move higher....

Continue reading the Tom Fitzpatrick interview below...


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“People are concerned about the commercial shorts in gold, but at the end of the day there are a number of different players in the gold market.  The ones we are most focused on are the players that are taking gold out of the market, and are not going to be putting it back onto the market.

Those large entities are obviously official authorities, central banks, sovereign wealth funds, etc..  So while it is possible to chop around because of commercial speculation, and maybe that worries day to day traders, for us it is not really a dynamic we are focused on in terms of the big picture view.”

Fitzpatrick had this to say regarding silver: “Silver is still looking very good here.  It has lagged behind a little bit on pattern, but not in terms of performance.  Silver has been outperforming gold, but its double-bottom neckline (breakout) is a little bit higher in terms of this chart.

We are looking at the breakout point being just shy of $37.50.  While we may get the breakout in terms of the weekly close on gold, silver holders may have to be a little patient.  When silver puts in a weekly close above $37.50, that aggressively moves the target to the highs of last year and extremely close to the high set back in 1980, that target for silver being $49.80.

If we see the move to $2,060 in gold and $49.80 on silver, that suggests a significant outperformance for silver.  If those moves were to take place in tandem, we would see a very nice 15% move in gold, but the silver move would be roughly 40%.  So it does suggest over the coming months that the market will see significantly money flows into silver.

As participants see gold breaking out and various players feel they have missed the move, instead of chasing gold they will look to silver because it could still be quite a ways from its previous trend high.”

Fitzpatrick also added: “At the end of the day, for us, apart from the technical setup, every time we take one step back look at what’s happening around the world, it is all very constructive for the metals.

If you look at what is happening in the developed world, in terms of monetary and fiscal policy, every time we do that exercise we come to the same conclusion, that the present setup is unequivocally bullish for gold.

Gold can bounce around because of the trading, but it is inconceivable to us that investors wouldn’t be maintaining some portion of gold within their portfolios as a hedge against the tremendous uncertainty the world faces today.”

© 2012 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.  However, linking directly to the blog page is permitted and encouraged.

The interviews with Gerald Celente, Rick Santelli, Michael Pento and Don Coxe are available now.  Also, be sure to listen to last week’s line-up of other KWN interviews which included, Pierre Lassonde, Rick Rule, Nigel Farage, Ben Davies, Dr. Keith Barron and Jean-Marie Eveillard by CLICKING HERE.

Eric King

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© 2012 by King World News®. All Rights Reserved. This material may not be published, broadcast,

rewritten, or redistributed.  However, linking directly to the blog page is permitted and encouraged.

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