Gold may reach $1,500 an ounce by 2017: Bank of America Merrill Lynch
Bank of America Merrill Lynch analysts think
the worst is over for gold and they believe the yellow metal could rise
to $1,500 an ounce by 2017.
NEW YORK (Scrap Register):
Bank of America Merrill Lynch analysts think the worst is over for gold
and they believe the yellow metal could rise to $1,500 an ounce by
“We believe the upcoming Fed rate hike is the only major
obstacle to sustained price rises. While a normalization in rates is
likely, aggressive rate hikes are not our base case, which is a reason
we believe the worst may be over for gold after the dreadful price
collapse in 2013 and muted price movements in 2014,” analysts at Bank of
America Merrill Lynch added.
Although the US economy seems to be
moving forward, the analysts say it may not be all hunky dorey and
therefore they expect delayed and more muted rate hikes, which would
help gold break our of recent ranges, the Americam bank added.
to the BofA Merrill Lynch Fund Manager Survey for April, “Investors see
growing overvaluations in both bonds and equities and have signaled
concern about a valuation bubble forming.”
A few of the survey’s findings:
respondents said global equities are currently overvalued – up from 23%
in March and 8% in February, and the highest proportion since 2000.
--84% of respondents said bond markets are overvalued, up from 75% in March and the highest proportion in the survey’s history.
--A net 68% believe the United States is the most overvalued region.
--18% said currencies is the asset class most vulnerable to volatility, a rise of 5 percentage points.
the U.S. dollar is overvalued against the euro and the yen, sharply up
from February’s 12% saying the dollar is undervalued.
All percentages are net percentages.