Price of $1,400 to $1,500 by year's end "would not be surprising," he says

"Our outlook on gold is pretty bullish," says Vikas Ranjan, principal of Ubika Research, a research and analytics firm serving small-cap clients in Canada.

"In the short to medium term, we believe that it is proving to be more resilient than previously thought," Ranjan tells The Gold Report. "Actually, if you look at the correlations between the U.S. dollar and gold, typically that used to be in reverse, but of late they have been moving in tandem; when the U.S. dollar rallies, gold continues to be strong. There are very strong fundamentals that support the positive outlook for gold and that will continue to be the case for the foreseeable future. ...

"Forecasts are always very difficult to make; but, looking at the trendline, it would not be surprising to us if gold ends up around the $1,400-$1,500 range by year-end. Beyond that, it will probably be finding similar support levels for sometime before making another move, depending upon the economic environment."

According to Ranjan: "Many investors view gold as not just a commodity but a store of value and an asset class. We are actually surprised by gold's strength in an environment where inflation continues to be low. As you know, gold has traditionally done well in high-inflation situations, but not as well in low-inflation situations. Strong gold in these low-inflation environments suggests to us that investors will continue to seek refuge in gold as long as capital markets remain uncertain."

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