NEW YORK (Commodity Online): Gold to rise sharply in the second half of this year and platinum group metals also looks positive, said Commerzbank, the second-largest bank in Germany, after Deutsche Bank.
The bullion is still down more than 6 percent in the second quarter, its steepest quarterly loss since 2004. Gold has fallen more than 12 percent from the 2012 peak of around $1,790, and 18 percent from an all-time high above $1,920 reached in September 2011.
According to the German bank, all metals are rallying sharply from Thursday’s sell-off as the dollar weakens after some progress was reported at the European Union summit.
The previous slide in gold as puzzling, since the high risk aversion among market participants during the European debt crisis should be supporting rising gold prices, they added.
“Gold is thus behaving less like a safe haven at present and more like a risky asset class,” the bank continued.
“In any case, we are confident that bargain-hunters will support gold at the current prices, and expect to see a sharp rise in price in the second half of the year. Fundamentals also strongly suggest increased platinum and palladium prices.” Commerzbank concluded.
At 9:22 a.m. EDT, August gold futures at the Comex division of the New York Mercantile Exchange is up $44.80 an ounce to $1,595.20.
The Commerzbank holds representations and holdings in various commercial and financial centers in Asia and the Americas.
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