British multinational bank, Standard Chartered says there is lots of scope for gold to move higher through much of the rest of the year, as current price levels do not reflect the very real threat of soaring inflation.
Suki Cooper, the bank’s precious metals analyst, says the bank expects those inflationary expectations to impact on gold’s price for the better. She said, “Gold prices are not fully reflecting risks of high inflation in the near term as economies reopen but are garnering support from recovering physical demand. While the Fed’s dovish stance and the scale of U.S. fiscal stimulus provide a favourable backdrop, gold prices tend to rally strongly amid periods of high and unexpected inflation.”
Standard Chartered’s latest forecasts call for gold prices to hit £1,288 ($1,775) by June and £1,321 ($1,820) during quarter three.
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