Home Daily Blitz Gold to Sell Off, Then Rebound to $1,350 Next Year, TD Says
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Gold to Sell Off, Then Rebound to $1,350 Next Year, TD Says

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bloomberg-articleThe following is an excerpt from Ranjeetha Pakiam and Eddie Van Der Walt | October 16, 2016 | Bloomberg.com |

We’ve not seen the last of the rally in gold, according to Toronto-Dominion Bank.

Prices are likely to go as high as $1,350 an ounce sometime next year, after dipping below $1,200 as the Federal Reserve raises interest rates, likely in December, according to Bart Melek, the bank’s head of commodity research. Futures closed Friday at $1,255.50 an ounce on the Comex in New York.

Higher interest rates should initially lead to a stronger dollar, curbing demand for gold, he said in an interview in Singapore before the start of the London Bullion Market Association and London Platinum & Palladium Market annual conference. Demand will be reignited as real interest rates, or yields minus inflation, remain low, keeping gold competitive with other assets, he said.

“By the end of next year, we will be testing the highs we saw early this year,” Melek said.

For more visit: Bloomberg.com

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