Gold up $1 to $1837
ANZ Research discusses its outlook for gold over the coming year.
"Our gold valuation model suggests gold should trade around USD2,100/oz next year, assuming:
- US inflation rises to 1.7%,
- USD index falls to 90
- yields on 30y bonds hold steady around 1.6%
"That said, we acknowledge headwinds in the short term. The continued strength in equity markets is likely to see further investor rotation out of gold-backed ETFs and into equities (predominately traditional growth sectors). We have subsequently cut our 0-3m target to USD1900/oz. However, we maintain our 12m target of USD2,100/oz," ANZ adds.
