By Vibin Antony
Barclays expects gold prices to test new lows in 2015 as they battle formidable hurdles in the form of the dollar strengthening against the euro to levels last reached over 10 years ago and the first rate hike in the US in nine years.
Barclays forecasts that they will breach $1130/oz for the first time since April 2010. However, they believe the lows of this year and next are likely to offer attractive entry level prices for the longer-term investor as stale positions are flushed out and the physical market takes centre stage, setting the stage for the next leg higher for prices, but one driven by the East.
Gold prices have digested a whirlwind of external and internal factors in recent weeks, ranging from the rejection of the Swiss gold initiative to India’s surprise lifting of trade restrictions. However, gold remains at the mercy of the macro environment, in Barclays view.
In 2015, Barclays expects gold to remain under pressure but to find better support from the physical market. The British Bank expects prices to average $1170/oz as the market remains in surplus by more than 1kt, despite a projected contraction in recycled gold and the official sector remaining a net purchaser.
(This article is compiled by Vibin Antony on behalf of Scrap Register. Send in your suggestions and comments to editor@scrapregister.com)
Barclays expects gold prices to test new lows in 2015 as they battle formidable hurdles in the form of the dollar strengthening against the euro to levels last reached over 10 years ago and the first rate hike in the US in nine years.
Barclays forecasts that they will breach $1130/oz for the first time since April 2010. However, they believe the lows of this year and next are likely to offer attractive entry level prices for the longer-term investor as stale positions are flushed out and the physical market takes centre stage, setting the stage for the next leg higher for prices, but one driven by the East.
Gold prices have digested a whirlwind of external and internal factors in recent weeks, ranging from the rejection of the Swiss gold initiative to India’s surprise lifting of trade restrictions. However, gold remains at the mercy of the macro environment, in Barclays view.
In 2015, Barclays expects gold to remain under pressure but to find better support from the physical market. The British Bank expects prices to average $1170/oz as the market remains in surplus by more than 1kt, despite a projected contraction in recycled gold and the official sector remaining a net purchaser.
(This article is compiled by Vibin Antony on behalf of Scrap Register. Send in your suggestions and comments to editor@scrapregister.com)
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