JP Morgan confirms its $2500/oz Gold prediction

JPMorgan has been calling for gold to ump to 2500 an ounce by the year's end, but in the past month the metal has fallen ten percent. Insight on where prices are headed, with Colin Fenton, JPMorgan chief commodities strategist."i think we'll be right. there is a question about what time horizon which is a classic economic stroke but i think the key point to take away is in late summer the risk in the gold market doubled. that gold you don't necessarily see that. we can measure it through the implied volatility of the options. they're now at 30%. that was at 15 for most of this year. keep in mind we're talking essentially about a rock, something very easy to store. to have a volatility higher than many equities is a pretty remarkable fact." says olin Fenton, JPMorgan chief commodities strategist.