Gold price predictions and market forecasts :
Gold prices have witnessed a steep decline of around 9 to 10% in the last few weeks. The decline was mainly triggered by the speculations that Cyprus Central Banks may sell some of its extra gold reserves to alleviate its debt concerns as well as Fed’s withdrawal from bond buying.
The final nail in the coffin came from the bearish call of major investment bankers and gold analysts. Here’s a look into the major forecast on gold prices.
Jim Rogers
"I have repeatedly babbled about USD 1200-1300/oz., but that is just because that would be a 30-35 percent correction which is normal in markets"
George Soros
In a recent interview printed in the South China Morning Post, George Soros says, “Gold was destroyed as a safe haven, proved to be unsafe. Because of the disappointment, most people are reducing their holdings of gold.” However, he also mentioned that central banks are still buying gold, so he doesn’t “expect gold to go down.”
Societe Generale
In an April 2 report titled "The End of the Gold Era," Societe Generale forecast gold ending the year at USD 1,375 an ounce.
Goldman Sachs
Goldman Sachs is no longer telling investors to bet against gold.
After an 11 % tumble in gold prices over the past two weeks, Goldman is now telling clients to take profits and move on, even as it expects prices to keep falling throughout the year.
“We have closed our recommendation to short COMEX Gold, as prices moved above the stop at USD 1,400/toz. We have exited the trade significantly below our original target of $1,450/toz, for a potential gain of 10.4%. The move since initiation was surprisingly rapid, likely exacerbated by the break of well-flagged technical support levels. Our bias is to expect further declines in gold prices on the combination of continued ETF outflows as conviction in holding gold continues to wane as well as our economists’ forecast for a reacceleration in US growth later this year.”
Deutsche Bank
The investment bank observes that its commodities team has turned increasingly bearish on gold in recent months, and the forecast for oil is also lackluster. As per their in-house forecast, gold would trade about 25-45% below its cyclical peak (it reached $1900 in September 2011) in the coming years. The gold call is cyclical, primarily based around the likely strengthening of the Dollar and scaling back of Quantitative Easing (QE).
John Paulson
Billionaire investor John Paulson has told investors that he is staying the course on gold even though there may be more short-term volatility in the price of the metal.
exciting...news..
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