By Ranjeetha Pakiam
Gold may emerge as one of the Brexit vote’s biggest commodity winners should revised forecasts from a growing number of banks prove correct as the poll’s outcome sets the stage for greater global economic uncertainty and retards the likelihood of rate rises from the Federal Reserve.
Bullion may rally to as much as $1,400 an ounce over the next 12 months, Australia & New Zealand Banking Group Ltd. said in a report on Thursday, raising its outlook for the metal even as prices dipped amid signs of revived investor appetite for risk. Earlier Thursday, Singapore-based Oversea-Chinese Banking Corp. also flagged the potential for bullion at $1,400, following increased outlooks from banks including Goldman Sachs Group Inc.
“With the initial shock now wearing off, markets appear to be functioning relatively well,” ANZ said. However, “there are still many questions regarding the U.K.’s exit from the EU. The ensuing political crisis in the U.K. and concern about the very future of the EU should keep investors on edge.”