Gold undervalued, could rise to $2,000 an ounce in Q2

ANZ BANK-- "The gold market is struggling to find traction as massive volatility and uncertainty roil financial markets and investors; however, one Australian bank sees upside potential for gold in the next three months. In a report published last week, ANZ bank said that according to its estimates, gold prices are undervalued. The analysts said that they see prices pushing to $2,000 by the second quarter....The updated outlook comes as gold prices have been unable to maintain recent gains, and even maintain support around $1,500 an ounce. Market analysts have noted that gold has seen renewed selling pressure as panic sweeping through financial markets is prompting investors to 'sell everything.'...ANZ said that in the current environment, fair value for gold is around $1,600 an ounce. 'Our gold-valuation model suggests current spot prices are actually slightly undervalued. Moreover, while net-long investor positioning is reaching record levels, technically it doesn't look overbought,' the analysts said....'Synchronous central-bank rate cuts are the key to supporting gold investment demand. This has significantly raised the probability of gold breaking above USD2,000/oz,' the analysts said in the report."