Growth of gold production to the three-year maximum possible

18 Jul 2016

“Experts from the ABN Amro Group predict that the value of an ounce of the precious metal could reach $ 1,425 by the end of September. The gold price recently has risen to the highest since March 2014. By the end of September 2016, international markets pricesof gold could rise to $1,425 per ounce, that is yet about 4% more, Bloomberg reports referring to the forecast of experts from the ABN Amro Group.This banking group heads the ranking of the most accurate forecasters compiled by the agency. Compared with the previous forecast version, the maximum possible price of an ounce of gold has increased by ABN Amro by $75.Compared to the previous version of the forecast the maximum possible price of an ounce of gold increased ABN Amro for $75. If, indeed, gold rises to $1,425, it would be the highest price since mid-May 2013.The sharp rise in gold prices (during yesterday’s trading the value of an ounce rose to $1,374, which was the highest since March 17, 2014) at ABN Amro is explained by the fact that investors are looking for ‘safe haven’ in conditions of uncertainty caused by the Brexit vote.Experts admit that the gold price can decreasein late 2016 and in early 2017, however, in their opinion, it will be an additional incentive for shopping.At the end of June 2016, investor Jim Rogers said that after the Brexit the gold prices have risen too high and should fall by the end of the year.“I don't like to buy anything that's run straight up. I would prefer to buy the dollar as a haven than gold. I can’t get too optimistic about something that’s been going straight up. The dollar hasn’t done that, and often in history, when the dollar goes up, gold is weak”, explained Rogers.The Bank of Russia for January—May 2016 purchased 66,9 tons of gold in order to replenish its reserves, which is one and a half times greater than the volume of purchases of the precious metal in the first quarter of 2015 (42,7 tons), according to the statistics published by the World Gold Council (WGC). The total volume of gold purchases by the Central Bank of the Russian Federation in the first quarter of 2016 was the largest among all countries covered by WGC”, - Eugene Kaliukov.

Source: Investfunds