The price of an ounce of gold may well fall below $1500 an ounce early in 2012 is unlikely to retest September’s highs until later in the year, according to a recent poll of 20 hedge fund managers, economists and traders.
Latest Gold Price
Spot gold futures fell nearly 1 percent to $1,582.84 an ounce, before recovering to $1,593.29 by 07.03 GMT this morning, extending last week’s loss, which was the biggest in nearly three months.
Gold Price Forecast
The bleak forecast, coming after gold has lost 11 percent of its value so far this month, is likely to fuel fears that gold futures are close to ending more than decade long bull run and gold could be entering a bear market.
Almost half of respondents predicted bullion will fall to $1450 an ounce in the first quarter next year, with three seeing prices as low as $1400 an ounce.
The forecasts come after a dismal performance last week when prices hit a 10 week low of $1560 and gold lost its safe haven status.
“What is surprising is that in an environment where headline risk news is bigger than ever, gold has actually fallen from its highs. We believe that, in 2012, of all metals gold will be the worst performing.” said Christoph Eibl, CEO and founding partner of the Swiss commodity hedge fund Tiberius.
Gold in recent months has lost its safe haven allure, as the euro zone debt crisis squeezed US dollar funding in the market, pushing up borrowing costs. The turbulence in financial markets has also forced some gold investors to cash out their gold positions to cover losses elsewhere.
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Price of gold may trade under $1500 an ounce early in 2012
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