Saxo Bank forecasts $1,425-1,450 an ounce gold this year on Chinese policy shift
By GCRU Gold News on Wednesday, May 20 2015, 22:59 - Permalink
China’s multi-billion dollar Silk Road Initiative will prompt Beijing to pull money out of Europe and the United States for infrastructure investments elsewhere, says Saxo’s Steen Jakobsen. Here he explains why this could send interest rates and commodities higher and perhaps even push Europe into recession.
He also expects an increase in commodity prices as they outperform other assets. As a result Jakobsen has a new target price for gold, which he believes will increase as much as $200 to $1,425-$1,450 an ounce. He also thinks interest rates will rise, with US 10-year yields reaching 3.25 per cent before the end of year. So much for Goldman Sachs’s view that higher interest rates will hurt gold…