10.03.2015 - ANZ lowers gold price forecasts, sees metal testing $1,100/oz in Q2
Gold is under pressure from a surging dollar and could test $1,100 over the next three months, ANZ predicted while lowering its price forecasts for the metal for the rest of the year. The US currency, which has breached the 1.10 barrier against the euro following a run of positive US economic measurements and the increased likelihood of a US interest-rate rise in the coming months, will continue to weigh on gold in the near term, the bank said in a note on Monday. “Gold’s negative correlation with the USD means it will have a positive one with the euro, due to its weight in the dollar index basket. We think the EUR/USD’s break below 1.10 is critical, and opens up the possibility of a move towards parity,” it said. “This will clearly pressure the gold price, and suggests a further $80 per ounce downside move in gold is possible.”..............................................Full Article: Source
Print