blanchard and company is bullish on gold in the months ahead:

The slow trading months of summer are usually a time when gold prices decline, but economic analysts at Blanchard and Company, America's largest precious metals investment firm, say that indicators this year have them believing the metal is poised for a big breakout by the end of the third quarter.

Specifically, inflation, possible hyper-inflation, dollar weakness, and supply/demand and investor demand fundamentals are all positive for the price of gold toward the end of the summer, says Donald W. Doyle, Chairman and CEO of Blanchard and Company.

While gold remains range bound, it does so at levels above $900 per ounce, which Doyle says he sees as a springboard to greater price gains, and even new record highs, through the remainder of the year - and beyond.

"Gold is performing strongly at the same time the stock market is making a mild rally and as the dollar continues to stay at a level that we consider to be inordinately high," Doyle says. "Typically, gold would be declining - but that's not happening, and there are solid reasons why."

Doyle says demand is central to gold's current sustained high price levels, with Chinese and Russian central banks adding to their holdings and investor demand continuing at record levels.

"The fundamentals for gold, and particularly investment demand, are very strong," Doyle says. "Sales of gold by the U.S. Mint, which have always been a good proxy for U.S. investment demand, are approaching those of all of 2008 - a banner year for gold - and it's only the beginning of August."

http://www.mineweb.com/mineweb/view/mineweb/en/page33?oid=87109&sn=Detail