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Gold price looks set to bottom out in 2015

The 2014 Interim Gold Report published by the GFMS team at Thomson Reuters states that gold prices are likely to bottom out between $1,170/ Oz and $1,200/ Oz in 2015, 10% lower than the 2013 average prices.
According to the report, a test of $1,200/ Oz is “easily foreseeable” as US economy confirms its return to normalcy and global inflationary worries start easing. The low price levels for gold are likely to spur physical market. GFMS foresees a substantial resurgence in physical demand to happen in 2015, which would help to create a floor in place. As such, the research firm predicts bull market returning to gold in 2015.
The report states that gradual stabilization of the US economy was not conducive to gold investment in 2014. Despite this, gold prices have risen almost 3% year-to-date supported by geopolitical tensions in the Middle East and Ukraine. GFMS observes that without these risk factors, gold would have touched $1,200/ Oz in 2014 itself.
The strength in US dollar will continue to act as a bearish factor for gold. Though the Federal Open Market Committee decided to stick on to its schedule of interest rates, it is widely expected that rate cuts shall be more aggressive than initially forecast.

“After its wild gyrations in 2013, with a range of 42% — based on the London PM fix — gold price movements have been much more circumspect in the first part of 2014, with a range of 13%,” the GFMS team at Thomson Reuters said.

Source:Scrap Monster

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