Gold Price $1300: 3 Taps and Out?
June 24 (Reuters) - Goldman Sachs raised its average price forecasts on Friday for gold in the near-term, the full year as well as 2017 and 2018, saying Britain"s vote to leave the European Union suggested a more sustainable impact on the trajectory of U.S. interest rates.
Goldman raised its gold price targets to $1,300, $1,280 and $1,250 per ounce on a 3, 6,and 12-month basis, from $1,200, $1,180 and $1,150, respectively.
The bank also raised its average forecasts to $1,260, $1,261 and $1,250 per ounce, from $1,202, $1,150 and $1,150 for 2016, 2017 and 2018, respectively.
U.S. short-term interest rate futures rose to contract highs in early U.S. trading on Friday after Britain"s vote, spurring traders to expect the Federal Reserve may cut interest rates to help shield the economy from any global fallout.
Gold soared as much as 8 percent to its highest in more than two years after Britain delivered the shocking vote, and the price of copper and other industrial metals fell on worries over the vote"s impact on economic growth.
"As the fundamental impact on industrial commodities of a leave vote is expected to be extremely small, this price action is consistent with our view of a stronger dollar putting downward pressure on commodities despite supportive fundamentals in some key markets like energy," Goldman analysts said in a note to clients.
"However, the ultimate trajectory will depend on the intensity and duration of the uncertainty shock created by the leave outcome, and any potential revisions to the U.S. growth outlook, both of which remain highly fluid in the current context," the analysts said. (Reporting by Nallur Sethuraman in Bengaluru; Editing by Bernadette Baum)
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Source: http://www.dailymail.co.uk/wires/reuters/article-3658974/Goldman-Sachs-raises-gold-price-forecasts-near-term-2016-18.html
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