Gold Will Struggle To Break $1,300; Weak Inflation Overrules Lower Bond Yields - BNP Paribas

From kitco.com

One international bank expects gold prices could remain below $1,300 an ounce in the near term as the precious metal has been unable to catch a bid even as recession fears surge through financial markets, holding bond yields near their lowest level in 18 months. “While yields are declining, lowering the opportunity cost of holding gold, investors have not taken to increasing their long exposure to the metal as evidenced by the amount of gold held in physically backed ETFs like the closely followed SPDR Gold Trust,” said Harry Tchilinguirian, head of commodity research at BNP Paribas, in an emailed statement to ... (full story)