The price of an ounce of gold continues a path downwards, nearing three year lows, trading considerably under $1300 an ounce and according to some analysts the precious metal may fall further this year and into next.
Latest Gold Price
Gold futures dropped this morning as much as 2.6 percent to $1244 an ounce, the cheapest since September 2010, and was at $1247.27 at 11:25, Singapore time this morning. Gold prices now seem to be heading for the worst quarterly drop since 1920…
Gold has plunged 26 percent this year, entering a bear market in April, after some investors lost faith in the metal as a store of value.
Latest Gold Price Forecasts
Goldman Sachs has recently updated their gold price forecast predicting further falls over the next couple of years for the precious metal as the more stable economic situation and higher real interest rates encouraged investors to seek returns elsewhere.
“We expect that gold prices will decline further given our US economists forecast for improving economic activity and a less accommodating monetary policy stance. We expect this decline in prices to coincide with rising jewellery/retail demand, which we view as price responsive and not price setting,” it added.
Goldman said the price would fall to around $1,050 an ounce by the end of next year.
Meanwhile, Morgan Stanley has lowered its gold price forecast citing the possibility of reduced US Fed stimulus or outright withdrawal from the current quantitative easing program.
“With investor demand for safe-haven assets waning against the backdrop of a strengthening US dollar and rising US bond yields, market conditions for gold and silver have become markedly less favourable,” the bank said in a note. The bank cut its 2013 gold price forecast by 5 percent to $1409 an ounce and its 2014 estimate by 16 percent to $1313.
See the original post:
Price of gold continues downward trend under $1300 and may fall further
Leave a Reply
You must be logged in to post a comment.