Gold likely to touch $1,425: ABN Amro

The target of $1,425 is $75 higher than the previous forecast for the same period, and would be the highest price since August 2013.

Gold will probably extend its rally to as much as $1,425 an ounce by the end of this quarter on resilient investor demand and prospects for easier monetary policy, according to ABN Amro Group, the bank that’s rated by Bloomberg as the most accurate forecaster.

Gold and silver should continue to attract investors, analyst Georgette Boele said in a report received on Thursday, citing prospects for accommodative policies from the world’s central banks including in Europe. The target of $1,425 is $75 higher than the previous forecast for the same period, and would be the highest price since August 2013. It traded at $1,368 on Thursday.

Gold and silver have rallied as investors absorbed the implications of the UK vote to quit the European Union and speculated central banks may add to easing, with the Federal Reserve seen holding rates steady. While ABN Amro also flagged the possibility of lower prices in the final quarter of this year and into 2017, it said such a drop would offer investors an opportunity to buy.

(This story originally appeared on Financial Chronicle)