Share

Gold’s most accurate forecaster says prices may hit $1 425

Singapore - Gold will probably extend its rally to as much as $1 425 an ounce by the end of this quarter on resilient investor demand and prospects for easier monetary policy, according to ABN Amro Group, the bank that’s rated by Bloomberg as the most accurate forecaster.

Gold and silver should continue to attract investors, analyst Georgette Boele said in a report received on Thursday, citing prospects for accommodative policies from the world’s central banks including in Europe.

The target of $1 425 is $75 higher than the previous forecast for the same period, and would be the highest price since August 2013. It traded at $1 368 on Thursday.

Gold and silver have rallied as investors absorbed the implications of the UK vote to quit the European Union and speculated central banks may add to easing, with the Federal Reserve seen holding rates steady.

While ABN Amro also flagged the possibility of lower prices in the final quarter of this year and into 2017, it said such a drop would offer investors an opportunity to buy.

"Gold and silver prices have rallied substantially since the Brexit referendum," the bank said. "Safe-haven demand, the market pricing out of Fed rate hikes this year and next year and more BoE and ECB monetary policy easing are the main reasons behind the price rally."

Gold for immediate delivery gained for a seventh straight day on Thursday, with prices up 29% in 2016, according to Bloomberg generic pricing.

It rallied to $1 375.28 on Wednesday, the highest since March 2014, and has advanced for the past two quarters.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.94
-0.2%
Rand - Pound
23.91
-0.1%
Rand - Euro
20.43
+0.2%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.2%
Platinum
910.50
+1.5%
Palladium
1,011.50
+1.0%
Gold
2,221.35
+1.2%
Silver
24.87
+0.9%
Brent-ruolie
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.8%
Resource 10
57,251
+2.8%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders