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DBS goes head to head with Goldman
Be prepared for the next great transfer of wealth. Buy physical silver and storable food.
truthingold.com / February 17, 2016 at 10:13
Gold is set to benefit from sinking expectations for higher U.S. interest rates and the potential for further market turmoil, according to DBS Group Holdings Ltd., the Singapore-based bank that turned overweight on bullion last year before the metal surged.
“Volatility in financial markets due to the Chinese/global slowdown and low oil prices and doubts regarding the effectiveness of monetary easing could continue,” Manish Jaradi, senior investment strategist at DBS’s Chief Investment Office, said in an e-mail. “This could keep risk appetite in check and U.S. dollar rates low, supporting gold.”
Bullion rallied to the highest level in a year last week as traders cut bets on tighter U.S. monetary policy and negative rates spread in Europe and Japan, boosting the metal’s allure. The advance was buttressed by volatility in financial markets, sinking oil prices and concern that the global economy may be faltering. DBS’s positive stance contrasts with the outlook from Goldman Sachs Group Inc., which this week reiterated its forecast that gold will tumble, saying this year’s fear-driven rally wasn’t justified.
“The sharp scale back in U.S. Fed rate hike expectations and negative rates elsewhere suggests a ‘low for longer’ theme is back in focus,” Jaradi wrote. “With inflation expectations stable in the U.S., declining real yields could aid gold. Having said that, gold looks overbought in the near term.”
The post DBS goes head to head with Goldman appeared first on Silver For The People.
Thanks to BrotherJohnF
Source: http://silveristhenew.com/2016/02/17/dbs-goes-head-to-head-with-goldman/
