Swiss Bank Sees “Buying Opportunity”
After trading above and below and above $2,000 an ounce this month, the price of gold ran into a setback on Wednesday (8/19).
But Suisse Bank says, ““We see plenty of upside on the gold price and view the correction as a buying opportunity,”
As we’ve detailed (See Raising Targets), Goldman Sachs now sees gold headed to $3,000 in higher inflation rate environments, Bank of America has targets from “over $3,000,” to $3,400.
And now Credit Suisse has raised its gold price target.
The Swiss bank’s analysts point to US fiscal policy to explain their new higher target. The expect it to stay loose until we have much lower unemployment.
Their forecast also envisions a bounce back in gold demand in the jewelry sector, which fell 46 percent in the first half of the year.
Credit Suisse also expects a resurgence of central bank gold buying which fell with the pandemic in the first half of the year.
“We think central bank buying will increase sharply,” say the analysts.
In additional technical commentary, the Swiss bank says there is room for some consolidation before a move higher, although it does not expect the lengthier consolidation periods that were characteristic of the 2001 – 2011 gold bull market.
Credit Suisse expects gold to rise to $2,700 – $2,720 “over the longer term.”