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Credit Suisse: Factors Boosting Gold 'Occurring Concurrently' So 'Amplified'

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Credit Suisse has hiked its full-year gold forecast, commenting that a number of supportive influences are all occurring at the same time, therefore heightening their impact. Analysts said they have been bullish since 2018. They now estimate gold prices will average $1,327 an ounce in 2019, compared to $1,282 previously, and expect an average of $1,350 next year, compared to $1,300 previously. “The factors supporting the recent gold rally are more or less the same factors that have been in play for the past several months – a dovish U.S. Fed, recession fears, U.S.-China trade war, Brexit, central banks gold buying – but the difference this time around is that all the factors are occurring concurrently and are amplified,” Credit Suisse said. “Notably, the market is now pricing in a U.S. Fed rate cut in July, negative for the USD [U.S. dollar] and therefore positive for gold. The main reasons the U.S. Fed has changed its stance to a more dovish one appear to be below-target inflation, growth concerns due to protracted U.S.-China trade war, and some weaker U.S. economic data points (job growth, new housing starts, etc.), as well as perhaps pressure from the executive branch to lower rates.”

By Allen Sykora of Kitco News; asykora@kitco.com

 

Commerzbank Sees $1,500 Gold By End Of Year

Friday June 28, 2019 09:38

Commerzbank said it look for $1,500-an-ounce gold by the end of the year. Prices hit a six-year high on Tuesday, driven by rate-cut speculation and resulting sharp falls in bond yields, before the metal pulled back. Demand among financial investors has increased noticeably, the bank said. “In our view, the environment for gold remains positive,” Commerzbank said. “The ECB [European Central Bank] and Fed rate cuts that are expected and the numerous (geo)political risks are likely to push the gold price further up. We have therefore adjusted our forecast and now envisage a gold price of $1,500 per troy ounce by year’s end.”

By Allen Sykora of Kitco News; asykora@kitco.com

 

RBC’s Gero: Gold Holding In Higher Trading Range

Friday June 28, 2019 09:38

A number of factors are boosting gold and helping it stay in a higher trading range, said George Gero, managing director with RBC Wealth Management. He cited rebalancing, a short trading week in the U.S. next week due to the Fourth of July Holiday, anticipation of upcoming headlines with U.S. President Donald Trump and Chinese President Xi Jinping scheduled to meet Saturday, and international investors concerned about a softening economy globally, with a number of countries on a track to lower interest rates. Against this backdrop, traders are seeking gold as a hedge, Gero said. He added that he continues to see a “new higher gold trading range [of] $1,400 to $1,450.” Around 9:30 a.m. EDT, Comex August gold was 80 cents at $1,413.80 an ounce.

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