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Published on Aug 30, 2016
(Kitco
News) - Gold is kicking off the week under pressure as markets continue
to digest last week's comments from Federal Reserve officials in
Jackson Hole, but some analysts think investors may not be pricing the
yellow metal properly. This week, Deutsche Bank analysts argued there is
a correlation between gold prices and the level of monetary expansion
by central banks, and according to this relationship, the metal should
be some $400 higher. Frank Holmes of U.S. global investors agrees,
noting that Deutsche Bank's number may even be 'conservative.' Speaking
with Kitco News on Tuesday, Holmes added that some famed gold investors
argue that the true value of gold sits more at $8,000 an ounce. Gold
futures have been under pressure since late last week in the aftermath
of Fed Chair Janet Yellen's comments, which were construed as hawkish by
the marketplace. The yellow metal managed to hit a two-month low as the
U.S. dollar strengthened - it fell as far as $1,315.30, breaking
Monday's two-month bottom of $1,317.20.
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