GS says Gold to hit $1150-$1200
NEW YORK, Nov 10 (Reuters) - U.S. investment bank Goldman
Sachs (GS.N) said gold could rise to record highs in a range
from $1,150 to $1,200 an ounce, driven by declining real
interest rates and renewed buying interest by central banks. The fact
that the yield on the 10-year U.S. Treasury
Inflation-Protected Securities (TIPS) remained under 1.5
percent suggested upside risk to its gold forecast, Goldman
said in a note dated Monday, Goldman continues to have a 12-month target
of $960 an
ounce for gold. Spot bullion XAU= traded at above $1,100 an
ounce on Tuesday after a strong rally in the last two months. "Should
10-year TIPS yields remain at these levels, we
would expect gold price to move to $1,150 to $1,200 a troy
ounce," Goldman said. The sale of 200 tonnes of gold to India by the
International Monetary Fund (IMF) signaled an ongoing shift of
central banks and governments from being net sellers to net
buyers of gold, the bank also said. [ID:nSP375900] "The purchase by
India highlights the growing trend of
central banks and governments in the emerging economies to
increase gold holdings as a means of diversifying their
currency reserves," Goldman said.
(Reporting by Frank Tang; Editing by Lisa Shumaker) |
