Benchmark gold prices may post fresh two-month highs this week, possibly breaking $1,280 an ounce, if a slump in emerging markets continues to spark a flight into the relative safety of bullion, a CNBC survey shows.
CNBC’s latest survey of market sentiment showed two-thirds of respondents (12 out of 18) expect prices to gain this week, 22 percent (4 out of 18) forecast prices will fall while 11 percent (2 out of 18) expect prices will trade at current levels.
A $10 billion a month cutback in the Federal Reserve’s bond-buying program “though modest, has created currency crises in emerging markets,” said Scott Carter, CEO of Lear Capital. “Gold is still viewed as a safe haven when currencies are being devalued and has increased due to currency volatility.”
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