Gold Target $1370 Year End, Dutch Bank ABN AMRO

Gold Target $1370 Year End, Dutch Bank ABN AMRO

Gold Silver Reports — The big Dutch bank ABN AMRO reiterated its $1370 year-end target for gold, which they originally set last February, after gold’s first move above $1240.

Last week, they said inflation may help precious metals follow crude oil’s rapid rise back above $50 per barrel. They are more bullish on silver, saying “We believe that silver will outperform gold, and also for gold to continue rallying in 2016 and 2017.”

Germany’s Commerzbank has long been one of the most bullish big banks in Europe, even before gold’s price increase earlier this year. They are still bullish on gold, even if we see a short-term drop following a Fed rate hike, saying “we do not expect the price to fall lastingly below [$1200] because such a price level is likely to be viewed by investors as an attractive opportunity to buy.”

They added that “gold exchange traded funds recorded their strongest inflows for seven years in the first quarter. By contrast, there has only been moderate physical gold demand in India and China.” However, Commerzbank sees low prices generating higher demand in India and China, along with a comparative advantage in China:

“Given the lack of alternative investments – real estate is already very expensive in China and investing in Chinese stocks does not appear particularly attractive given the slumps in share prices and the disappointing performance of stock markets since last summer – private households can be expected to give preference to gold as a store of value.” — Neal Bhai Reports

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Neal Bhai has been involved in the Bullion and Metals markets since 1998 – he has experience in many areas of the market from researching to trading and has worked in Delhi, India. Mobile No. - 9899900589 and 9582247600

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