ANZ is looking for $1850/oz in gold
(Kitco News) - Strategists at Australia and New Zealand's ANZ Bank expect gold to reach $1850/oz but to suffer a reverse back lower in the next year and beyond. The bank said "Gold remains within the $1,750-70 range"
In justification of the call, the strategists noted "Low yields turn in favour of non-yielding gold investment". They added "Supportive factors for gold are waning with Fed tapering drawing closer. That said, risk around slower growth against higher inflation still sees a sustained strategic allocation to gold amid prevailing low rates backdrop."
They rounded off the note by saying "We expect gold prices to reach $1850/oz before retreating through next year and beyond."
There could be some volatility today as the market awaits the latest CPI data and FOMC minutes from the last Federal Reserve meeting. CPI is expected to come in at 4% year on year and anything lower could ease the Fed's fears over the "transitory" CPI rise. Away from this, the FOMC minutes could give trades more clues about the taper timing (schedule) and rate rise projections.