ABN Amro predicts gold price to rise to $1400

The gold price in euros has fallen sharply in recent weeks, but in dollar terms, the precious metal is unable to choose a clear direction. However, the positive factors will prevail later this year, according to Georgette Boele, an analyst at the ABN Amro.

According to Boele, who specializes in currencies and precious metals, the gold price could reach a rate of $1,300 per troy ounce by the end of this year. Before the end of next year, she even foresees a further increase to $1,400 per troy ounce.

Due to the rise of the euro, it seems as if gold is currently being sold, but measured in dollars, the gold price is still almost ten percent higher than at the beginning of this year. According to Boele, the fact that the gold price - despite the weak dollar and political uncertainty in the United States - is not rising further is the result of the sudden change of course by central banks.

This week, ECB President Draghi suggested that he wants to taper monetary stimulus in the short term, after which the governors of the Bank of England and the Bank of Canada suddenly changed their plans Announced to normalise monetary policy. With several central banks announcing less accommodative monetary policy, there is more pressure on the Federal Reserve to raise interest rates again later this year.

Gold price caught in narrow bandwidth (Source: ABN Amro)

Gold price to $1,400

According to analyst Boele, the prospect of rising interest rates is the reason why the gold price is currently not rising further and continues to move within a narrow range. It therefore foresees a Gold price of $1,250 per troy ounce, close to the price on the boards at the time of writing. Later this year, according to the ABN Amro analyst, gold will find its way back to the upside, as the effect of the weaker dollar will then outweigh fears of a rapid rise in interest rates.

For the end of this year, ABN Amro expects a gold price of $1,300 per troy ounce, which will rise further to $1,400 per troy ounce in 2018. According to Boele, the outlook for silver and platinum is also positive, while palladium will stabilize at the current price. The price of palladium has already risen sharply in recent months and even reached its highest level in 16 years earlier this month.

Gold price caught in narrow bandwidth (Source: ABN Amro)