ABN AMRO $1400 Gold in 20195 Dec 2018 20:04
https://www.kitco.com/news/2018-12-05/Renewed-Demand-In-China-And-India-To-Support-Gold-Prices-In-2019-ABN-AMRO.html
Renewed interest in gold in two important markets will help reverse the precious metal’s fortunes in 2019, according to one Dutch Bank.
Georgette Boele, coordinator of FX and precious metals strategy at ABN AMRO, said in a report Wednesday that they are bullish on gold and silver next year as they see renewed interest in the precious metals from emerging markets, specifically India and China, the world’s two largest gold consuming nations.
Looking at 2019, the Dutch bank sees gold prices averaging the year at $1,325 an ounce, hitting a high of $1,400 an ounce by December. The bank is also bullish on silver as it sees prices averaging the year at $16.60 an ounce and rising to $18 an ounce by the end of 2019.
The bank also sees potential for renewed investment demand as they expect to see lower bond yields and a weaker U.S. dollar next year. Boele said that they expect the Federal Reserve will only be able to raise interest rates once next year as the U.S. economy starts to slow down. This will keep real interest rates from rising and have less of an impact on gold’s opportunity costs.
“Going forward, the 2y U.S. Treasury yields will probably rise in tandem with inflation expectations. So real yields will likely not rise. All these factors support our view that the U.S. dollar has peaked and will weaken in 2019 and 2020,” she said. “Therefore, we expect gold prices to rally in 2019.”
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