Don’t Expect Gold to Go Wild Next Year
- Real borrowing costs continue to be low in historical terms
- Fears of equity and bond correction encourage investors
Photographer: Chris Ratcliffe/Bloomberg
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Gold has its fans for next year, but sparks are probably not going to fly.
Even as the Federal Reserve tightens monetary policy and the European Central Bank tapers bond purchases, gold is set to rise marginally as real interest rates stay low and the dollar weakens, according to Bart Melek, global head of commodity strategy at TD Securities Inc. in Toronto. He sees bullion averaging $1,313 an ounce in 2018, about 4 percent more than the mean so far this year.