Economics

Gold Outlook Pits DBS's Overweight Call Against Goldman's Bears

  • Financial market volatility may continue, DBS's Jaradi says
  • Bullion remains top commodity performer in 2016 after rally

Goldman's Gold Call: Time to Sell the Fear Barometer?

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Gold is set to benefit from sinking expectations for higher U.S. interest rates and the potential for further market turmoil, according to DBS Group Holdings Ltd., the Singapore-based bank that turned overweightBloomberg Terminal on bullion last year before the metal surged.

“Volatility in financial markets due to the Chinese/global slowdown and low oil prices and doubts regarding the effectiveness of monetary easing could continue,” Manish Jaradi, senior investment strategist at DBS’s Chief Investment Office, said in an e-mail. “This could keep risk appetite in check and U.S. dollar rates low, supporting gold.”