Gold Heading to $1150: Art Hogan

The dollar edged up from its 15-month lows and precious metals are competing for new highs. Gold is up 24 percent year to date with its futures rising above $1100 for the first time yesterday. And silver's price is also up a huge 54 percent year to date.

Morningstar says lots of funds are increasing their holdings in gold and other precious metals to hedge against a weak dollar and inflation.

Are metals still worth investing in or have they already peaked?

“We continue to expectgold upside to $1,150 during the next 12 months,” says Art Hogan, managing director at Jefferies & Co.

Hogan believes gold shares will regain support after a generally good third quarter. As investors discount a higher gold price, given its monetary and historical value storage profile, Hogan anticipates gold-related equities and exchange-traded funds (EFTs) to better reflect improved realizations and scarcity value.

In addition, Hogan finds some miners very attractive as well.

“We would add to positions in Agnico-Eagle Mines and Newmont Mining . We continue to rate Barrick Gold as 'Hold,'” he writes in his notes.

_____________________________

CNBC Data Pages:

________________________________

________________________________
Disclosures:

Disclosure information was not available for Hogan or his company.

Disclaimer