Banks Turn Bullish on Gold Post-Brexit; Soc Gen Eyes $1,400 Level

from Kitco NEWS

lass=”” >With gold prices holding strong gains above $1,300 since Friday’s surprise U.K. vote to leave the European Union, Societe General’s head of metals research is now calling for the metal to move much higher from current levels. ‘We expect prices to rise to $1,400/oz, with follow-through strength extending to the rest of the precious metal sector,’ Robin Bhar told Kitco News Monday. ‘The heightened market uncertainty will prompt investors to seek safe-haven assets, benefiting gold and the rest of the precious metals. While, arguably, some of this uncertainty has already been priced in, there is likely much more to come.’ Gold is still holding onto its nearly 5% gains Friday, with August Comex gold futures last up $4.60 at $1,327 an ounce. The spillover effects of the Brexit vote are also impacting the market’s expectations for U.S. rate hikes. According to CME’s FedWatch tool, markets are now pricing in a 6% chance of a rate cut in July.
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