| The price of gold should be boosted by official purchases from central banks and is expected to hit US1,400 an ounce by the end of this year. This is according to a note out today from Capital Economics, in which its commodities economist Simona Gambarini wrote: “We expect official purchases to be one of several factors that boost gold prices in the next year or two, despite the prospect of tighter US monetary policy and renewed strength in the dollar against other major currencies.”
Among the bullish signs she noted included the following: Most developing countries still hold less than 10% of their reserves in gold, compared to 70% or more in advanced economies...............................................Full Article: Source
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