Gold began this week on a lower note, however, one analyst
remains upbeat on the metal’s price. At the annual London Bullion
Market Association (LBMA) conference in Vienna, Bart Melek, head of
commodity strategy at TD Securities said in an interview with Kitco News that he
expects gold prices to get firmer this quarter, while base metals may
be hurt.
For gold, the forecast was upgraded, and "that’s very different than what we did for the base metals," he
said.
The Federal Reserve is in no position
to elevate interest rates given the recent weakness in U.S. economic
data, Melek thinks. If the central bank does not pull the trigger on rate hikes, Melek said it
will damage the dollar and in turn help gold.
"At this stage, we’re looking at a high of $1,225" he said.
