"The way I look at gold is the dichotomy is really between the physical gold trade and the paper gold trade," Weeden & Co. strategist Michael Purves tells Bloomberg in a March 20 interview.
"The physical gold story, if you will, is intact. We see large-scale purchases by central banks. That's continuing apace regardless of what prices you're seeing on the screen. ...
"I think we'll head up to $1,800 by September is my target right now. But I think it's a lot choppier trade than what we've seen over a lot the last several years because you have a lot of people who have come in above this, a lot of people came into QE3 last September, and they've seen nothing but price corrections. We're going to see people sell into rallies and I think it's going to take time to clear out some of that, but I do think that there's no question that the fundamental trends over the longer term are very much, absolutely intact, and that will provide support here."
"The physical gold story, if you will, is intact. We see large-scale purchases by central banks. That's continuing apace regardless of what prices you're seeing on the screen. ...
"I think we'll head up to $1,800 by September is my target right now. But I think it's a lot choppier trade than what we've seen over a lot the last several years because you have a lot of people who have come in above this, a lot of people came into QE3 last September, and they've seen nothing but price corrections. We're going to see people sell into rallies and I think it's going to take time to clear out some of that, but I do think that there's no question that the fundamental trends over the longer term are very much, absolutely intact, and that will provide support here."
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