Gold Rebound to $1,600 Seen by Fund Manager Day on Bank Stimulus

Gold will rebound to $1,600 an ounce by the end of this year as governments maintain efforts to boost economic growth for the next few years, according to Adrian Day, president of Adrian Day Asset Management.

Investors have “grossly overreacted” to speculation that the Federal Reserve will begin trimming its monthly bond purchases, Day said an in an interview yesterday. Bullion is down 21 percent this year as Fed policy makers debated the pace of asset purchases.

“All the Federal Reserve is talking about is cutting back on the additional stimulus put in place,” Day said. “No one is talking of tightening or reducing the Fed’s balance sheet.”