Big Banks calling US$1,500 an ounce!!

Gold, Trump and Rates: Bank That Foresaw Rally Flags $1,500
Ranjeetha Pakiam
July 18, 2016 — 10:47 AM AEST Updated on July 18, 2016 — 10:18 PM AEST


Gold is in a major bull market and may surge to more than $1,500 an ounce as low interest rates buoy demand and the U.S. presidential election looms, according to DBS Group Holdings Ltd., which foresaw this year’s rally and is now advising investors to buy any declines.

“Gold has seen four major bull markets since 1970: this is another one,” Benjamin Wong, foreign exchange strategist at the Singapore-based bank’s Chief Investment Office, said in an e-mail. “The market has yet to deal with the political uncertainty going into the Nov. 8 presidential election.”

Bullion rallied to the highest since March 2014 this month, topping $1,375, as volatility in global equities, the spread of negative interest rates, and the turmoil surrounding Britain’s vote to leave the E.U. fanned demand. As the timeline draws closer for Americans to choose a new leader, the Federal Reserve may hold off from raising borrowing costs in September or November, potentially benefiting gold.

Last week, Bank of America Merrill Lynch also listed the U.S. vote among factors that may lift bullion to $1,500 over 12 months.