According to analysts at TD Securities, strong official sector gold purchases open up the possibility that gold prices can move significantly above TD’s projected $1,400/oz target in late 2020, should central banks catch the “gold bug”.
Key Quotes
“Central bank reserve portfolio diversification, increasing value of reserves and it being nobody’s liability are just a few reasons that strong purchases may be reality for a while yet.”
“Central bank gold holdings have grown by a dramatic 13 percent (roughly 3,900 tonnes) since the lows recorded back in 2009 and are expected to grow by another 800 tonnes over the next two years.”
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