RBCCM Predicts Bullish Gold Price Upswing to Last Rest of Decade

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The investment banking arm of the Royal Bank of Canada also says that the "continued weakening of the US dollar, potentially leading to the unwinding of Bretton Woods II, is another factor (aside from geopolitical risk and economic uncertainty) increasing the metal's credibility."

RBC Capital Markets, which today is hosting an invitation only major gold seminar in London, has this week released a research report which predicts that the bullish upswing in the gold price will likely last until the end of the decade. Investors would continue to use gold as a safe haven and with the current perceptions of economic uncertainty and global geopolitical risk.

The London seminar has an impressive array of speakers including the CEOs of Barrick, Newmont, Polyus Gold, Goldcorp, Gold Fields, Harmony and Kinross among others.

The investment banking arm of the Royal Bank of Canada also says that the "continued weakening of the US dollar, potentially leading to the unwinding of Bretton Woods II, is another factor increasing the metal's credibility."

But - and it is a very big but if it comes about - RBCCM's analysts believe that with the gold price currently sitting at near record levels, and with November being a seasonally quiet period for gold, a "significant correction" could be in store. The sharpness of the predicted correction could, it is felt, take the gold price right back down to the $725-750 level.

But, following such a shake-out, the analysts further believe that the price could bounce right back up again to as high as $900 an ounce in the first quarter of next year.

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