Gold outlook pits DBS overweight call against Goldman bears
By GCRU Gold News on Wednesday, February 17 2016, 09:25 - Permalink
Gold is set to benefit from sinking expectations for higher US interest rates and the potential for further market turmoil, according to DBS Group Holdings, the Singapore-based bank that turned overweight on bullion last year before the metal surged.
“Volatility in financial markets due to the Chinese/global slowdown and low oil prices and doubts regarding the effectiveness of monetary easing could continue,” Manish Jaradi, senior investment strategist at DBS’s Chief Investment Office, said in an e-mail. “This could keep risk appetite in check and US dollar rates low, supporting gold.”