monsitj/iStock via Getty Images Despite gold's recent weakness, Wells Fargo analysts said Thursday they remain firmly bullish on the metal in the longer term, forecasting prices to reach $6,100-$6,300/oz by the end of this year, driven by continued central bank demand and an eventual moderation in yields and the U.S. dollar. Wells Fargo expects the Iran war to have a generally limited impact on th...
monsitj/iStock via Getty Images Despite gold's recent weakness, Wells Fargo analysts said Thursday they remain firmly bullish on the metal in the longer term, forecasting prices to reach $6,100-$6,300/oz by the end of this year, driven by continued central bank demand and an eventual moderation in yields and the U.S. dollar. Wells Fargo expects the Iran war to have a generally limited impact on the economy, with eventual easing inflation pressures and lower Treasury yields later in the year removing key headwinds for bullion, and it expects the conflict to be relatively short-lived, reducing the risk of a sustained inflation increase. The bank also said gold buying at central banks remains well above long-term averages, providing a structural pillar of demand. The analysts recommended investors use the pullback in gold to gradually build positions, suggesting capital could rotate from energy markets into precious metals as the conflict stabilizes. Gold futures resumed their downward momentum Thursday as crude oil prices rebounded, keeping inflation fears intact and sustaining expectations of elevated interest rates, and the U.S. dollar edged higher, making dollar-priced bullion more expensive for other currency holders. "Concerns that higher energy prices will push inflation higher, forcing central banks to adopt a more hawkish stance, continue to support the dollar and yields," ADM Investor Services said in a note. Gold and silver both fell for the 10th time in the last 12 sessions on Thursday, with front-month Comex gold ( XAUUSD:CUR ) for March delivery down 3.8% to $4,375.50/oz, its second-lowest settlement of the year, and front-month Comex March silver ( XAGUSD:CUR ) slumping 6.5% to $67.671/oz. ETFs: , ( GDX ), ( GDXJ ), ( IAU ), ( NUGT ), ( PHYS ), ( GLDM ), ( AAAU ), ( SGOL ), ( RING ), ( BAR ), ( OUNZ ), ( SLV ), ( PSLV ), ( SIVR ), ( SIL ), ( SILJ ) More on gold and silver Tarnished Gold Gold Is Speculative Right Now Why I'm Not Waiting Any Longer To Do...