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BofA maintained its 12-month gold price target of $2,000 per ounce

Bank of America Merrill Lynch said on Thursday it maintained its 12-month gold price target of $2,000 per ounce set in August, even after the recent correction in prices.

“It is worth noting that falling quotations were not accompanied by substantial outflows from physically backed exchange traded funds particularly in recent days. Hence, the correction was not necessarily driven by a broad-based reassessment of fundamentals,” the investment bank said in a note to clients.

The bank said continued structural problems in the United States and Europe were bullish for gold, which suggests that real interest rates would remain negative or at least very low in the foreseeable future in many advanced nations.

Gold demand from countries like China is set to increase, the bank added. – Reuters

Posted by on October 2, 2011. Filed under Precious metals. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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