Sunday 19 May 2024
main news image

(March 14): Gold is the number one pick in commodities markets for JPMorgan Chase & Co and the price has the potential to reach US$2,500 (RM11,720) an ounce this year, according to the bank’s global head of commodities research.

“We believe that US$2,500 is a possibility” after bullion reached an all-time high of US$2,195.15 on Friday, Natasha Kaneva said during a Bloomberg TV interview. “Because the market tends to get overexcited.”

To achieve that price target, “we need a confirmation from continued moderation in the inflation and in the jobs numbers as well and the confirmations that the Fed indeed is cutting,” said Kaneva.

The Fed’s long-anticipated pivot to looser monetary policy is widely expected to boost gold’s appeal compared with yield-bearing assets like bonds. Policymakers have said they needed to see more evidence that inflation is headed toward its 2% target before lowering borrowing costs.

      Text Size