According to Barclays research real interest rates are a key factor in gold spot prices and the current macroeconomic environment remains positive for gold.
This prediction signals good news for those who have maintained a bullish stance despite the recent instability around gold price and the hype surrounding the outflows from ETF’s.
The $1,482 figures comes as the fed delay the start of tapering their asset purchasing schemes.
According to Barclays research real interest rates are a key factor in gold spot prices and the current macroeconomic environment remains positive for gold.
Dovish indications from the fed are likely to be at the root of Barclays revised predictions along with other major financial institutions such as UBS who have upped their forecast to $1450 from a previous figure of $1250 and the likelihood of this phases continuing into the short term is likely to strengthen gold bulls at least for the short term.
Despite this gold is still susceptible to the impact of the continued outflows from ETF’s and has flitted around the $1,328 on Monday. Upcoming US economic data releases will be able to tell a fuller picture.