Gold price forecast higher - falling rates, rising risk

Author: Eamonn Sheridan | Category: News

An overnight note on gold from RBC, forecasting average gold price assumption of $1,500/oz for the remainder of 2019 and in 2020 (previously $1,350/oz)

  • for 2021 and 2022 is now $1,450/oz (was $1,300)
  • long-term gold price to $1,400/oz from $1,300/oz
Reasoning (in brief):
  • prices to be driven by financial market sentiment, the outlook for the global economy and expected actions by the Fed
  • tactical trading opportunities to buy the gold equities on any weakness ahead of the upcoming FOMC meeting in September and the market's current expectations for a 25 bps rate cut
  • At this point gold appears to be pricing in no successful completion of a U.S.-China free trade agreement before year end
  • We expect a seasonal rally in the gold price in the December - January period
An overnight note on gold from RBC, forecasting average gold price assumption of $1,500/oz for the remainder of 2019 and in 2020 (previously $1,350/oz)

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