Bank of America: Gold Price Could Hit $1,300 by May

CNBC reported that MacNeil Curry, the Bank of America Merrill Lynch’s head of global technical analysis, believes that a near-term correction in the US dollar and declining yields on Treasuries may lead to a “sustained and sizable” gold price rally. The yellow metal might even rise above $1,300 per ounce by the end of May.

As quoted in the market news:

‘Rates are headed lower, and the dollar is likely to remain in a corrective sequence in general,’ said Curry. ‘Gold should rally in that environment.’

According to Curry’s chart work, gold has been in a ‘sizable corrective phase’ since November 2014. But recently, the yellow metal has shown signs of life. Moreover, Curry points out that gold’s inverse relationship to the dollar appears have broken down, which he interprets as another bullish sign for bullion.

‘Gold has been on its own, really, since November,’ Curry said. He points out that in November, gold ‘went from $1,132 up to $1,307 and throughout that time, the dollar index actually rose from about 87.5 to almost 95.’

Click here to read the full CNBC report.