U.K.’s flash PMI indices indicate decline in business activity in November, composite index falls to 47.4
U.K. jobless rate rises to 4.8 pct in Q3 2020, labor market likely to deteriorate further in months ahead
BofAML calls for $1500 gold
Bank of America Merrill Lynch (BofAML) has upgraded its outlook for gold and silver. It has given an upgrade to its price forecasts for these metals. Gold has risen close to 30 percent since the beginning of the year and the investment bank thinks it has a lot more to go thanks to the rise of the right-wing populism, European migration crisis, and wealth distribution.
The bank said in a statement, that it’s is reinforcing its bullish view on these metals, given the above mention risks and subdued global growth as they will have the negative consequences on effective economic policy making. “The world has been walking from crisis to crisis and we see risks that this may not change.” The bank changed its forecast for next year from $1325/troy ounce to $1475/troy ounce and said that silver price may overshoot to $30 per troy ounce.
Our regular readers must be aware that FxWirePro has been an early bird and we have called for $1670 per troy ounce in gold price and recently we upgraded our silver target to $26 per troy ounce. Now this call from a prestigious investment bank reinforces our outlook.