6 May 2015
Gold could reach $1,500 by 2017 – BAML
FXStreet (Edinburgh) - Michael Widmer, Analyst at BAML, sees the troy ounce of the precious metal reaching the $1,5900 handle by 2017.
Key Quotes
“Gold has been trading in a range around $1,200/oz over the past few months”.
“This level can be fundamentally justified, as one of our supply and demand models highlights”.
“Despite falling and negative rates in large parts of the world, a sustained rally has so far not materialised because the Fed has remained steadfast on normalising policy rates, with all the implications this has on the USD, for instance”.
“While we acknowledge that the US economy has been cruising ahead, we believe not all is hunky dorey”.
“As such, delayed and more muted rate hikes by the Fed would help gold break out of recent ranges. We believe the metal could rise to $1,500/oz by 2017”.
Key Quotes
“Gold has been trading in a range around $1,200/oz over the past few months”.
“This level can be fundamentally justified, as one of our supply and demand models highlights”.
“Despite falling and negative rates in large parts of the world, a sustained rally has so far not materialised because the Fed has remained steadfast on normalising policy rates, with all the implications this has on the USD, for instance”.
“While we acknowledge that the US economy has been cruising ahead, we believe not all is hunky dorey”.
“As such, delayed and more muted rate hikes by the Fed would help gold break out of recent ranges. We believe the metal could rise to $1,500/oz by 2017”.