Gold News: Gold Nears Five-Year Low, Expected to Drop Even More
Gold News
Top ranked gold forecasters, such as Goldman Sachs Group Inc. and other big banks, have a bleak outlook for Gold’s price. This comes after gold price hit a three month low and approached a five-year low when the price came out to be $1,084. Forecasts from Goldman Sachs see the gold price dropping as low as $1000 in the next 12 months.
Gold has been fluctuating a lot in the past year as analysts have expected the U.S. Federal Reserve to raise the interest rate. Interest rates are currently at a record low, and haven’t been raised in nine years. After the most recent fed meeting, it appears that there will finally be a rate hike. Goldman Sachs believes the price .will be $1050 at the end of the year.
Most analysts have a similar forecast as Goldman. J.P. Morgan, sees Gold starting out 2016 at $1040. Citigroup Inc. who had high expectation for gold at the beginning of the year, are now one of the more pessimistic groups expecting it will end the year at $1000. However, some banks such as Morgan Stanley, think gold could fall all the way down to $800.
