MACQUARIE: BUY GOLD NOW: It's About To Rocket To $2250

BUY THE DIP.

That's the advice of Macquarie Private Wealth in respect to gold.

Gold has certainly come off quite a bit, form a high of around $1900/oz. late last summer, to around $1650/oz. now. And the improving economy and the rise in real interest rates has made a lot of people turn negative on the metal.

Macquarie advises getting in now for 5 reasons:

• Sentiment towards gold has no reached "extreme pessimism" levels.
• March is seasonally the weakest month for gold.
• Excess slack in the US economy will prompt the Fed to say on hold until 2014, as indicated, keeping short rates low.
• The extent of the long-term rate rise is over. The Fed will ease some more.
• Sovereign risk is not over.

Ultimately, they see it going to $2250/oz.

These two charts underpin their argument.

Macquarie

Macquarie