Capital Econ: Gold Headed Higher As Inflation Moves Up

Don’t look now but the price of gold is approaching $1,150 per ounce, just weeks after analysts were predicting imminent collapse, a research note from Capital Economics observes. In fact, they say the headwinds for gold could be behind us – pointing to tighter labor markets and even, dare it be said, inflation.

Headwinds for gold are behind us, as $1,200 per ounce gold by year end is reasonable

The headwinds for gold will not last and other metals, such as the “industrial indicator” copper should rise as oil prices pick up and labor slack further tightens. “Headline inflation should snap back in most economies over the next...