Investors should make the most of recent falls in the price of gold and buy the precious metal by the summer to benefit from another record high by the end of the year, analysts said on Tuesday.
Spot gold touched its latest peak near $1,800 at the end of February. Since then, the price of gold has declined, although the precious metal rose in the past four sessions.
It is currently trading around $1,650 an ounce.
“I think that for another couple of months gold is likely to stay under pressure…but looking forward, by the end of the year we do expect another record high for gold because we do expect more monetary easing, not just from the Fed but also by the ECB and also by the Asian central banks,“ Eugene Weinberg, analyst at Commerzbank told CNBC on Tuesday.
He believes that there is no rush to get into gold as the prospects for now are “a little bleak” due to the decreased likelihood of further monetary easing by the Federal Reserve in the short term.
“I am pretty confident that for the time being this medium-term trend is likely to stay downward and we are likely even to see prices below $1,600 short term,” he said.
But by the end of the year he expects gold to move above $1,900/ounce.
Exactly how high will be dependent on the aggression of monetary easing carried out by central banks, he said.Page 1 of 3 | Next Page