Gold Soars to $2,700/oz Forecast on Central Bank Buying and Geopolitics

• Gold prices will end the year higher than expected at $2,700/ounce due to central bank purchases and geopolitical risks • Gold has rallied 20% in past 2 months, hitting record highs over $2,400/ounce amid Middle East tensions
• Emerging market central banks are significantly accelerating purchases of gold as a real asset • Viewing gold as a barometer for fear and wealth is useful - it rises despite higher expected interest rates • Four factors could curb gold demand reduced emerging market buying, China property market support, Ukraine/Middle East peace, hawkish Fed policy