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ABN AMRO downgrades gold price but sees solid support around $1,700

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ABN AMRO downgrades gold price but sees solid support around $1,700

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Georgette Boele, senior gold strategist at ABN AMRO, said that she now sees gold prices ending the year around $1,700 an ounce as the Federal Reserve could bring the Fed Funds rate closer to 4%. “We only expect a modest decline in gold prices from the current levels. This is based on our view that we expect the U.S. dollar to remain relatively strong, although we have not pencilled in another strong rally from these already high levels,” Boele said in the report. “Secondly, we think that U.S. real yields are close to a peak or have already peaked. As a result, it is likely that this driver will not add substantial pressure on gold prices from current levels.

Expectations have solidified after Powell warned markets in his speech in Jackson Hole Friday that not only will interest rates be moving higher, but could remain higher for longer than expected.

 

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