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. Prices for the August gold futures contract traded at $1,253.70 an ounce on Comex Thursday.
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.”..............................................Full Article: Source
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