Gold to $1,320 by year's end, Compass CEO says - Wealth Managers

Bullion's floor is near its production cost of $1,200, Andrew Su tells CNBC

Gold could rally by as much as 5% -- to about $1,320 -- before the end of 2013, Compass Global Markets chiefAndrew Su tells CNBC in a Dec. 11 interview.

"I think the Fed won't taper this December. I also think that strong technical support levels have been built around the $1,200 level. That's where we see the average production cost of gold," Su said.

"The last time we saw it below $1,200, it bounced very, very quickly. And a combination of other factors will see gold rise relatively rapidly over the next three weeks, and I think $1,350 is a relatively modest target for the end of the year. ... I think we'll see a renewal of the budget crisis in the U.S. ... That will cause some safe-haven buying and I think we'll also see China growth slowing down to about 7% [in the first quarter of 2014] ... That will bring back a bit of risk aversion to the markets and we'll see gold recover as a result," he said.

"We have an end-of-year target of $1,320 for gold and a medium-term target of $1,450," he told the network. 

More information can be found online at http://www.goldbullionadvisors.com