Natalie Parkinson
1
All posts from Natalie Parkinson
Natalie Parkinson in Natalie Parkinson,

Societe Generale sees 2017-2019 gold price average of $825

Societe Generale raised its near-term gold forecast, but said it remains very bearish over the medium to long term and continues to recommend selling gold rallies.

In a note dated Wednesday, it raised its 2014 average gold price forecast to $1,272 an ounce, attributing the increase to support from the Crimean crisis. Reports said the previous forecast was $1,180.

But Societe Generale said gold is likely to trade well below $1,200 next year, and to break below $1,000 in 2016 when the Federal Reserve is “likely to hike rates at a much faster pace than currently discounted by the market.”

Overall, the determination of the members of the Fed to “maintain the U.S. monetary policy towards tapering and gradual but protracted policy normalisation, including rising interest rates as the economic outlook continues to improve, underpin our bearish view about the gold price in the medium term,” they said.

As a result, it expects the gold price to average just $825 between 2017 and 2019.

Source: www.marketwatch.com