| Bank of America Merrill Lynch has lowered its gold forecast for this year, citing the macroeconomic backdrop and the persistent headwinds to the metal’s prices of late. It now sees gold averaging $1,122 per ounce this year, down 6.8 percent on its previous forecast, it said in a note on Wednesday. The spot gold price was last at $1,139.10/1,139.50, little changed from Tuesday’s close.
The bank also expects gold to fall below $1,000 in 2016 and to trade at an average of $950 in the first quarter of the year. “Continued hawkish comments from the Fed against falling inflation are our most notable concern,” the bank said. “The combination of higher nominal opportunity costs and lack of inflation has hardly ever been bullish in the past 40 years.”..............................................Full Article: Source
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