25.02.2016 - BNP Paribas Sticks To Sub-$1000 Gold Forecast For 2016, Despite 17% Rally
Although some banks have shifted their outlook on gold, as global market uncertainty propelled prices up more than 17.5% on the year, one bank remains firm that prices will move lower. Harry Tchilinguirian, global head of commodity markets strategy at BNP Paribas, said that the bank is in no hurry to change its forecast and there is still a possibility for gold to drop below $1,000 an ounce. In January, the firm said that it expects gold prices to average $980 an ounce this year and $860 in 2017; and, Tchilinguirian said that fundamentally nothing has changed. In fact, the latest rally has made selling out of the money call options — the bank’s preferred way to take advantage of a weaker gold market — a lot more compelling, he added...............................................Full Article: Source
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