Gold prices slipped on Mondayafter posting its largest gain in eight weeks last Friday amid protests in Egypt. Michael Dudas, precious metals and mining analyst at Jefferies said he expects the precious metal will have an upswing after a brief correction.
“We did get a spike in oil and gold on fear trade… with regards to the crisis, but gold has had a good run and the month of January has seen some profit taking on the metal and some of the stocks, so we should get a sense of getting a bottom sometime in the first quarter,” Dudas told CNBC.
Dudas said his eventual price target for gold is $1,400 an ounce.
“What’s really reflecting gold is the excess liquidity that’s been pumped into the marketplace and fears of currency debasement—those are the things that will drive gold in the medium to longer term,” he explained.
“Certainly [Egypt’s crisis] brings some of the headline risks into the metal, but we haven’t seen the really big spike in the market that people would have seen years ago.”
Coeur D Alene
Scorecard—What He Said:
- Dudas' Previous Appearance on CNBC (Dec. 29, 2010)
More Market Intelligence:
- Unrest in Egypt Fueling Rally in Gold
CNBC Data Pages:
Other Gold Miners:
Duduas does not own shares of AEM, NEM or CDE.