Deutsche Bank: Gold price to hit $1,900 by end of October
A bullish thesis for gold was recently presented by
Deutsche Bank's commodity analysts. Gold has responded as expected to the latest
round of monetary expansion by the Fed. The precious metal did not rally with
Operation Twist because the program did not involve increasing the monetary base
- and was therefore deemed to be less inflationary.
If gold continues to perform (purely based on
inflation fears) as it did during the previous balance sheet expansions by the
Fed, DB projects gold prices hitting $1,900/oz by the end of October.