The gold price is set to move higher in the coming months as inflation picks up according to new research from RBC.
“Analysis suggests a -0.5% real rate would imply a $1,380/oz gold price and a -1.0% real rate $1,546/oz” — that’s according to RBC’s April 10 Global Gold Outlook note, which takes a look at how lower real interest rates, coupled with a dovish Fed will impact the gold price.
RBS via Value Walk
Consumer prices in the United States rose 0.9% year-on-year in March of 2016, indicating that inflation is reemerging after a long period of dormancy. This should have sparked a more hawkish tone from Federal Reserve policymakers. However, the recent significant global volatility in January and February has left the path for rate hikes in 2016 much more uncertain and led to a sudden dovish turn by the FOMC.
And with inflation picking up, but the Fed unable to hike because of global macro issues, RBC speculates that there are now growing parallels to the 1970s when external pressures and fragile growth rates did not allow the Fed to hike. This was also notably a time of strong gold price appreciation.
See full analysis from RBC on Value Walk here
Gold Prices (LBMA)
21 April: USD 1,257.65, EUR 1,113.21 and GBP 877.01 per ounce
20 April: USD 1,247.75, EUR 1,098.09 and GBP 867.45 per ounce
19 April: USD 1,241.70, EUR 1,095.18 and GBP 867.01 per ounce
18 April: USD 1,237.70, EUR 1,095.02 and GBP 872.45 per ounce
15 April: USD 1,229.75, EUR 1,092.16 and GBP 867.46 per ounce
Silver Prices (LBMA)
21 April: USD 17.32, EUR 15.31 and GBP 12.05 per ounce
20 April: USD 16.97, EUR 14.93 and GBP 11.81 per ounce
19 April: USD 16.62, EUR 14.67 and GBP 11.57 per ounce
18 April: USD 16.20, EUR 14.33 and GBP 11.41 per ounce
15 April: USD 16.17, EUR 14.33 and GBP 11.40 per ounce
Gold News and Commentary
Silver ends at highest level since May; gold barely budges (Marketwatch)
Gold steadies as dollar firms; silver hits 11-month high (Reuters)
Silver Climbs to Highest Since May After Entering Bull Market (Bloomberg)
Chinese Gold Mining Giant Targets Overseas Buys as Demand Gains (Bloomberg)
Trader: Gold is about to break out—here’s why (CNBC)
Silver Prices May Be Ready to Shine (US News)
Silver is finally catching up to gold (Business Insider)
Why Are The Chinese Stockpiling Silver? Big Price Move Coming? (Gold Seek)
War on Savings: The Panama Papers, Bail-Ins, and the Push to Go Cashless (Ellen Brown)
Why One Analyst Believes Gold Could Hit $3,000 (Gold Seek)
Read More Here
Read Our Most Popular Guides in Recent Months
