'Quantitative Failure' = $2,000 Gold?

GoldMuscleTattoo'Quantitative Failure' Gives Gold A Chance At $2,000, Says BofAML -Kitco
"Gold's rally has room to run with Bank of America Merrill Lynch (BofAML) projecting that the yellow metal hits $1,500 an ounce next year with the potential to get as high as $2,000....

'We see scope for gold to rise towards $2,000/oz,' BofAML said in a report published on Friday. A big supporter of gold prices going forward will be the effects of 'quantitative failure,' the bank pointed out. 'Successive rounds of monetary easing have had a series of side effects...This has been a key driver behind the recent gold rally and with more easing to come, the dynamic will likely sustain a bid for the yellow metal,' BofAML wrote....Central banks will also continue to support gold with more buying as many now prefer to diversify their reserves to hold more gold, BofAML pointed out. 'The motivation behind the respective reserve strategies varies, with the historical positioning, the long-term store of value, gold's role as an effective portfolio diversifier and lack of default risk...De-dollarization features as well as a motivation,' the report noted."

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