Bullion price will rise to $2,200 in 2014, thanks to supply and demand
CIBC World Markets is turning more bullish on gold
and suggests it's nearly time for investors to pounce on the sector to capture a seasonal bounce.
CIBC analysts, including Barry Cooper and Alec Kodatsky, believe that the further quantitative easing measures from the U.S. Federal Reserve is setting the stage for a continuation in the gold
rally that subsided in mid-September.
"QE1 and QE2 were the drivers for gold price increases in the order of $20 to $30 (U.S.) per month," the analysts wrote in a research note. "We expect that QE3 will offer something between these figures, although on a percentage basis the moves will not be as significant due to the higher gold
For 2013, CIBC kept its forecasts unchanged, expecting gold
will average $2,000 an ounce and silver
$35 an ounce. But it now sees gold
rising to an average of $2,200 for 2014 and silver
"The figures represent our view that prices are underpinned by the rising cost of supply, plus strong demand coming from both investor interest and central bank buying," they said.Read Article