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The Worst May Be Over For Gold – BoAML

Monday April 13, 2015 1:25 PM

Bank of America Merrill Lynch analysts say they still think the worst is over for gold. “We believe the upcoming Fed rate hike is the only major obstacle to sustained price rises,” they say in a report Monday. “While a normalization in rates is likely, aggressive rate hikes are not our base case, which is a reason we believe the worst may be over for gold after the dreadful price collapse in 2013 and muted price movements in 2014,” they added. Although the U.S. economy seems to be moving forward, the analysts say it may not be all “hunky dorey” and therefore they expect delayed and more muted rate hikes, which would help gold break our of recent ranges. “We believe the metal could rise to $1,500/oz by 2017,” they say.

By Sarah Benali of Kitco News; sbenali@kitco.com


Chances For Upside, But Overall Bearish Gold – Barclays

Monday April 13, 2015 10:38 AM

Although Barclays' analysts remain bearish on gold, they see limited downside given the upcoming Indian festival season when gold demand picks up. "In the absence of a macro catalyst, gold is likely to struggle to make sustained gains," they say in their Gold Delta report. "However, the floor is likely to firm as demand in India picks up in the run up to festival-related buying, though poorer harvests have capped spending," they add. They note that recent gains in gold prices have been corrective and expect any gains to cap near the $1,307 level. "A break above the 1225 area would point to further short-term upside squeeze and provide an opportunity to sell at better levels," they say. "Our initial downside targets are towards the lows near 1142 and then 1131, the 2014 lows," they add. The analysts highlight their price forecasts for gold and expect gold to average around $1,190/oz in the second quarter and $1,183/oz for the year.

By Sarah Benali of Kitco News; sbenali@kitco.com


Gold Market Still Not Ruling Out A June Rate Hike – Barclays

Monday April 13, 2015 9:38 AM

Although a June rate hike seems unlikely, it is still a possibility, which is helping to cap any gains in the gold market, say commodity analysts at Barclays. They note that the minutes of the March Federal Open Market Committee meeting, which were released last week, are still being digested by the marketplace. “Our economists’ think that a June rate hike, while possible, is unlikely, given the reduction in the Fed’s estimate of NAIRU and the soft March employment report. However, the gold market came under pressure with June not having been ruled out. As we have argued previously, a June hike would expose gold further to downside in the absence of seasonal physical demand,” they say.

By Neils Christensen of Kitco News; nchristensen@kitco.com


European Safe-Haven Demand Helping Gold Despite Strong USD – iiTrader

Monday April 13, 2015 9:30 AM

A stronger U.S. dollar is pressuring most major commodities Monday morning but analysts at iiTrader note that gold is still holding up relatively well compared to other precious metals. They add that safe-haven demand in Europe is helping to limit some of gold’s losses. “The bears need a close below major support and recent lows at 1190.7-1190.8 in order to confirm a failure and open the door for lower price action in the immediate term,” they say. Currently Comex June gold futures are trading at $1,204.2 an ounce, relatively flat on the day.

By Neils Christensen of Kitco News; nchristensen@kitco.com


More Is Needed To Encourage Investors To Jump Back Into Gold – RBC' Gero

Monday April 13, 2015 9:30 AM

Gold prices continues to hold above $1,200 an ounce Monday morning, but the yellow metal is trading in no man's land, says George Gero, vice president and precious-metals strategist with RBC Capital Markets Global Futures. "We still need closes over $1,225, more open interest, higher volume and higher lows for a technical turn to convince funds to asset allocate gold in the second quarter of this year," he says.

By Neils Christensen of Kitco News; nchristensen@kitco.com


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