The Worst May Be Over For Gold – BoAML
San Francisco (Apr 13) Bank of America Merrill Lynch analysts say they still think the worst is over for gold. “We believe the upcoming Fed rate hike is the only major obstacle to sustained price rises,” they say in a report Monday. “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,” they added. Although the U.S. 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. “We believe the metal could rise to $1,500/oz by 2017,” they say.