Gold is Heading Back to a Bull Cycle, Nomura Says

“Like a phoenix regenerating from its ashes, cyclical gold appears set to recover,” write Tyler Broda and six co-authors.

The shift comes with notable increases to gold and silver price forecasts: Nomura now expects gold to sell for $1,335 this year and $1,460 next, up from $1,138 and $1,200, respectively. The firm’s silver view went to $21.52, from $16.25.

So why now? In short, ETF outflows have abated. Hedge funds are no longer panicking. Gold producers reacted to last year’s selloff by curtailing new projects. And real-interest rates don’t seem to be heading anywhere at the moment.

Read More: blogs.barrons.com/focusonfunds/2014/03/05/gold-is-heading-back-to-a-bull-cycle-nomura-says/