Sunday, July 17, 2016

How ABN AMRO Bank Turned from Gold Bear to Bull

Zero Hedge released an article, The Worst Gold Bear Is Now The Most Convinced Bull, where leading Dutch bank ABN AMRO's precious metal analysts are chastised for their gold price forecasts.

"Less than one year ago, Dutch bank ABN AMRO has put itself on the map by being more bearish on gold than Goldman Sachs. Whereas the latter was expecting to see a gold price of $1000/oz, the head analyst responsible for precious metals at ABN AMRO said she was expecting a gold price of $800 per ounce by the end of 2016......."

"Fast forward to today. Gold is trading firmly above the $1300/oz, and almost 70% higher than ABN’s target price. But of course, just like any other ‘analyst’, the bank quickly reversed its course just a few months later when the market started to turn around......."

"ABN Amro has now released an update report with its commodity price projections for the next 18 months, and it’s surprising (but refreshing) to see the bank is now expecting the gold price to end 2017 at $1450/oz...."

There is continued uncertainty economically and geo-politically from extreme low interest rates, to Brexit, a failed Turkish coup, and an ongoing dispute in the South China Sea; let's see how ABN AMRO's latest gold forecast will turn out.

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