Gold Favored as Fed May Have to Backtrack, Mideast Bank Says
- Bullion may gain to $1,800 by end-2017, Emirates NBD forecasts
- Dugan says investors should be buying the metal on pullbacks
Gold Prices Are Still Solid
Gold may rally to $1,400 an ounce in the near term and go on hit $1,800 by the end of next year as the world’s central bankers err, according to the largest lender in the United Arab Emirates, which is advising clients to hold up to 10 percent of portfolios in bullion and buy recent dips.
A premature hike by the Federal Reserve may lead to a slide in inflation, a pullback in growth and greater volatility, causing investors to shun risky assets, according to Gary Dugan, chief investment officer for wealth management at Emirates NBD PJSC. Should the Fed stumble by tightening, investors’ faith in the dollar will be eroded, buoying bullion, said Dugan, who spoke in an interview on Bloomberg Television in Singapore and to a reporter.