ANZ is looking for $1850/oz in gold

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(Kitco News) - Strategists at Australia and New Zealand's ANZ Bank expect gold toreach $1850/oz but to suffer a reverse back lower in the next year and beyond.The bank said "Gold remains within the $1,750-70 range"

In justification of the call, the strategists noted "Lowyields turn in favour of non-yielding gold investment". They added"Supportive factors for gold are waning with Fed tapering drawing closer. Thatsaid, risk around slower growth against higher inflation still sees a sustainedstrategic allocation to gold amid prevailing low rates backdrop."

They rounded off the note by saying "We expect gold prices toreach $1850/oz before retreating through next year and beyond."

There could be some volatility today as the market awaits thelatest CPI data and FOMC minutes from the last Federal Reserve meeting. CPI isexpected to come in at 4% year on year and anything lower could ease the Fed'sfears over the "transitory" CPI rise. Away from this, the FOMCminutes could give trades more clues about the taper timing (schedule) and raterise projections.

By Rajan Dhall

For Kitco News

Follow rajfx10rdhall@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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