Australia and New Zealand Banking Group (ANZ) says that while gold may be trading slightly lower at the moment (making for the ideal investment landscape), this could quickly turn with $1700 forecast within the next six months.
The bank’s strategists say it has run models which demonstrate gold prices are mainly driven by interest rates, inflation and the US dollar. Its models suggest that we’ll see gold making notable gains in the near future.
Daniel Hynes, who is an ANZ senior commodity strategist and commodity strategist Soni Kumari say in their report, “Our model also suggests prices could breach USD1,700/oz over the next six months. This offers opportunities for consumers, producers and investors. A pullback to fair value, in the short term, could present an opportunity for increasing exposure to the metal. With solid fundamentals, gold remains a good prospect for portfolio diversification.”