Abitibi Royalties sees gold rangebound, upper limit of $1,425

Mon Jun 5, 2017 8:11am EDT
 
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By Barbara Lewis

LONDON (Reuters) - The gold price XAU= is likely to stay range-bound over the next year, with an upper price of around $1,425, barring any major financial shock, the head of Canadian gold company Abitibi Royalties (RZZ.V: Quote) said.

CEO Ian Ball's view sets him at odds with his mentor and renowned gold bull Rob McEwen, of McEwen Mining (MUX.TO: Quote), for whom Ball worked for a decade.

The gold price XAU= was trading around $1,280 an ounce on Monday after reaching a six-month high following disappointing U.S. jobs data on Friday.

"I'm not a bull. That's where Rob and I differ," Ball told Reuters in an interview.

He predicted U.S. President Donald Trump's policies would keep the dollar strong "as long as he doesn't get impeached".

"The gold price will perform well in currencies that are not U.S. In U.S. dollars, it's going to trade in a range, with a high of $1,425 over the next 10 to 12 months," Ball said. "I hope we don't see as low as $1,000."

To climb above that range, the world would "need a shoe to drop in the financial system".

The U.S. Justice Department named former FBI chief Robert Mueller last month as special counsel to investigate alleged Russian interference in the 2016 U.S. election and possible collusion between Trump's campaign and Moscow.   Continued...

 
FILE PHOTO - Gold bullion is displayed at Hatton Garden Metals precious metal dealers in London, Britain July 21, 2015. REUTERS/Neil Hall/File Photo