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Gold prices to test fresh lows in 2015

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The gold prices are expected to struggle in 2015, says most recent research note published by Barclays. According to them, the prices of the yellow metal are likely to touch new lows during this year. The strengthening US dollar and Fed’s planned interest rate hike may weigh down on gold prices.

Meantime, the market is dominated by debates about the timing that US Fed may come up with interest rate hikes. The investment banking firm notes that gold prices tend to struggle during interest rate hikes. The strengthening US economy may prompt Federal Reserve to announce interest rate hike by mid-2015.

The disinvestment in gold is likely to accelerate during the latter half of the year. The gold prices may slip to $1,130 per Oz during Q3 2015. Barclays has downgraded the 2015 average gold price forecast from earlier $1,180 per OZ. The gold prices are likely to average around $1,170 per Oz during 2015, it notes. Furthermore, it forecasts the average gold price in 2016 to be at $1,150 per Oz.

However, analysts from Barclays believe that gold may find support from physical markets during the year. Healthy demand from key gold consuming countries like China and India should offer floor to prices, it added.

Barclays also states that weaker gold prices may drag down Platinum Group Metals (PGMs) prices. It forecasts platinum to average around $1,324 per Oz in 2015. The 2015 palladium average prices are likely to be at $850 per Oz.

Source:Scrap Monster

Zhejiang Yaang Pipe Industry Co., Limited

Article Categories:
Metals · Raw materials

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