From our friends over at RBC Capital Markets here is a research report on gold. First you can read the synopsis for gold and at the bottom you can download the full report.

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Fundamental Drivers Expected to Provide Upside for Gold

A Positive Outlook for Gold into H2/16

A more dovish posture from the Fed, declining real rates and improving fundamental demand for physical gold, have lead to our more positive outlook for gold. For the balance of 2016 we expect gold to trade in a broad $1,200/oz to $1,300/oz range with the gold price improving over the course of the year. There are a number of positive demand catalysts, including steady fundamental demand from China and India, systematic central bank purchases, and US inflows into the physical gold ETFs (Exhibit 4). This later trend is reminiscent of the fundamental investment demand observed from 2005 to 2007 (Exhibit 8).

Gold price forecast increased and silver maintained

We are increasing our average gold price forecast by 9% to $1,250/oz in 2016 and by 8% to $1,300/oz for 2017/long term (Exhibit 3). Our silver price forecast remains unchanged at $15.50/oz in 2016, $16.50/oz in 2017 and $17.50/oz in 2018/long term. We expect precious metal prices to remain volatile for the foreseeable future while the market assesses the outcome of the dovish FOMC posture. RBC now forecasts a single rate hike in 2016, and we believe that this “low and slow” path has been discounted into a $1,250 gold price. A dovish Fed outlook into 2017, growing inflation expectations or a financial market shock would lead to further upside for gold.

Equity outlook – look for seasonal trading opportunities in 2016

We expect gold equities to continue to lead the direction of the commodity in 2016 and recommend that investors look for pullbacks in trading ranges to add to core gold/silver equity holdings. Near term we could see a pullback in May-June, during a period of seasonal weakness for physical gold and gold/silver equities (Exhibit 7). We would use any share price weakness as a buying opportunity ahead of seasonal strength in August-September.

In a Resource Equity portfolio we recommend that investors hold an Overweight position in precious metals stocks (was Market Weight) versus non-precious metal commodities. And in a Diversified Equity portfolio we recommend a Market Weight position in precious metals stocks (was Underweight).

Look for operating leverage and strong fundamentals for equity selection

The Q1/16 rally favoured the large cap North American Tier I producers and out of favour South African gold miners. If gold continues to perform positively, as we believe, we would expect some of the Tier II and III names with greater operating leverage could begin to outperform. On average the target price returns for our global coverage of gold producers has increased by 25% (Exhibits 1-2). We recommend investors focus on companies with high quality reserves, attractive margins and solid balance sheets.

Rating changes: Kinross and AngloGold Ashanti have been upgraded to Outperform from Sector Perform and Goldcorp and Fresnillo have been downgraded to Underperform from Sector Perform.

Preferred Gold / Silver Equities

• Australia: Silver Lake and Gold Road;
• London: Acacia, AngloGold Ashanti, and Hochschild;
• North America: Kinross, Agnico Eagle, Silver Wheaton, Detour Gold, Klondex, Guyana Goldfields, Osisko Gold Royalties and Franco Nevada.

All values in USD unless otherwise noted.

Link to Full Research Report, including Required Disclosures and Disclaimer here ->Global_Gold_Outlook__The_Time_is_Right_for_Gold2016-04-10