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Gold May Hit $1,300 by End of Year, ICBC Says

  • U.S. interest rate increases are mostly priced in, says bank
  • Metal’s slump may lure more demand from physical buyers
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Stuart Tonkin, chief executive officer at Northern Star, discusses gold prices.(Source: Bloomberg)
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Gold’s plunge to the lowest level in more than a year is close to ending, and prices will probably climb back to $1,300 by December, according to ICBC Standard Bank Plc.

Bullion may average $1,260 an ounce in the third quarter and rise further in the following three months as interest rate increases are priced in and physical demand emerges, Marcus Garvey, a London-based commodities strategist, said in an interview in India. “We are going to see almost certainly two U.S. interest rate hikes come this year, but they are already, if not fully priced, fairly nearly. So there isn’t a huge scope for a surprise there.”