Leading Citi analyst Tom Fitzpatrick expects gold to hit $2,500 in Q1 2013 while silver reaches record heights.
In an interview with King World News Fitzpatrick provides a chart-rich exposition on the reasons why both precious metals are headed for a near-term surge.
If gold repeats patterns last seen over five years ago the precious metal could surge to $2,500 by Q1 2013:
So the picture to us is looking increasingly positive in terms of the potential move. Also, this move in gold continues to look very similar to the formation we saw into early 2007, before we started to see gold move higher. If gold repeats that pattern, while the double-bottom targets $2,060, that 2007 pattern would suggest that we could be looking at something even higher, maybe as high as $2,450 to $2,500 as we move into the first quarter of 2013.
Fitzpatrick also expect silver to breach the record high last set over three decades ago:
I would suggest it’s unlikely we are going to see a move to that ratio as we hit the $2,500 level on gold. But it’s not inconceivable that we could be back to the ratio that we saw very recently at around 32. At $2,500 gold, that would suggest a silver price in the $75 to $80 region. I would also note that would be significantly above the high for silver that was set in 1980.