Gold Seen Rising to Four-Year High as Fed ‘Gentle’ on Rates
- ‘We’re fairly confident’ that bullion will do well: TD’s Melek
- Economic and political tail-risks set to boost prices: Kavalis
El-Erian Says June Fed Rate Hike Still on the Table
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Gold may extend gains after climbing to the highest level in six weeks following disappointing monthly reports on U.S. employment and wages, according to two analysts attending a conference in Singapore this week.
Prices will probably increase to a four-year high above $1,400 an ounce this year as a “less than inspiring” recovery means the Federal Reserve won’t step up the pace of increases in borrowing costs, leaving real rates in negative territory, according to Nikos Kavalis, director and founding partner of Metals Focus Ltd., an independent consultancy. Toronto-Dominion Bank’s Bart Melek said gold may touch $1,300 with a $1,275 average in the fourth quarter.