Canaccord Adams ups Gold Price prediction
A prominent Canadian bank claimed yesterday (December 3rd) that Gold Prices look set to be the major beneficiary from the fall-out of the financial crisis.
The yellow metal has been surging in the past year as investors seek a safe haven amid the US government building up a major fiscal deficit in response to the downturn.
Now Canaccord Adams has revealed that it is positive about the future of gold, while also upping its near-term peak estimate from $1,100 per ounce to $1,300 per ounce.
"We believe macro-economic conditions remain supportive for gold and see the outcome of global financial stimulus efforts as broad currency devaluation, inflation and gold's increased status as a reserve and investment asset," said the bank, according to Reuters.
Gold's ability to provide a store of wealth in the current economic climate was also highlighted last week by Peter Tse, head of precious metals at the Hong Kong division of the Bank of Nova Scotia, which is Canada's third-largest bank.
He explained that Gold Prices have remained resilient as money is continuing to flow into the metal over concerns that alternative investments will reap less rewards.
"There's some safe-haven buying as people seem like they're losing confidence in everything else," he said in an interview with Bloomberg.
"People put their flows into gold and that's probably the reason why gold is still holding up."
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