LONDON (Commodity Online): Potential for gold prices to reclaim $1,900 an ounce by year-end, said Commerzbank, the second-largest bank in Germany after Deutsche Bank.
According to the German bank, for now, gold is "refusing to budge," holding its own above $1,600 an ounce but unable to push much further.
Analysts cite several factors that could help price climb, however. They list potential for further delays to the introduction of the European Stability Mechanism because a complaint against the ESM has been filed with the European Court of Justice, which could delay the decision of Germany's Federal Constitutional Court.
"In addition, forthcoming monetary easing measures to be taken by central banks are likely to spark higher inflation rates, which should benefit gold as a store of value," the bank added.
"What is more, the escalation of tensions in the Near and Middle East is causing the geopolitical risks to increase. We are therefore confident that the remainder of the year will bring considerable price rises, and would put the gold price at above $1,900 per troy ounce by year's end," Commerzbank concluded.
Global gold prices were steady to marginally higher early on Tuesday as the market awaited government reports on retail sales and producer price inflation.
Around of 7:45 a.m. EDT, gold for December delivery was $1.30 higher at $1,613.90 per ounce on the Comex division of the New York Mercantile Exchange. September silver was up 4.8 cents to $27.815 an ounce. Spot gold was up $2.15 to $1,611.40.
The London morning hp;f fixing was $1,614.50 per ounce.
Analysts cite several factors that could help price climb, however. They list potential for further delays to the introduction of the European Stability Mechanism because a complaint against the ESM has been filed with the European Court of Justice, which could delay the decision of Germany's Federal Constitutional Court.
"In addition, forthcoming monetary easing measures to be taken by central banks are likely to spark higher inflation rates, which should benefit gold as a store of value," the bank added.
"What is more, the escalation of tensions in the Near and Middle East is causing the geopolitical risks to increase. We are therefore confident that the remainder of the year will bring considerable price rises, and would put the gold price at above $1,900 per troy ounce by year's end," Commerzbank concluded.
Global gold prices were steady to marginally higher early on Tuesday as the market awaited government reports on retail sales and producer price inflation.
Around of 7:45 a.m. EDT, gold for December delivery was $1.30 higher at $1,613.90 per ounce on the Comex division of the New York Mercantile Exchange. September silver was up 4.8 cents to $27.815 an ounce. Spot gold was up $2.15 to $1,611.40.
The London morning hp;f fixing was $1,614.50 per ounce.
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