Capital Economics Sees Gold Moving To $1,400 as Silver Moves Above $18.50
KITCO NEWS - Post-Brexit, one research firm says it was eyeing $1,400 gold (GLD) - Get Report before the referendum and is sticking with its forecast. Julian Jessop, head of commodities research for London-based Capital Economics, says he wouldn't be surprised to see the yellow metal hit $1,400 an ounce over the next few weeks. However, he is also not ruling out prices coming down. Jessop has not cancelled out the possibility of an interest rate increase yet. While he remains bullish on gold, he expects prices to pullback as initial fears fade. 'Already you're seeing signs of a bit of calm creeping back into the market,' he told Kitco News. Gold prices were higher and near the daily high on Wednesday, as the overall technical posture for gold remains bullish. August gold futures were last up $9.40 an ounce at $1,327.30. Jessop also explains why he is not surprised by silver's (SLV) - Get Report impressive run-up, saying it is simply following gold's lead. Comex silver futures scored a 21-month high above $18.50 an ounce on Wednesday.
This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.
