| Further to its outlook on gold, Citibank is analyzing potential rate hikes by the Federal Reserve over a period of time to get clues on gold’s direction. The fluctuations in the US dollar are also being considered in the bank’s study of gold prices.
In the bank’s research report, it has listed three possible scenarios: In its “base-case” scenario, the bank points out a 65% chance that gold’s price will be $1,325 per ounce in 3Q16 and $1,280 in 4Q16. It has considered only one rate hike before the year’s end. The weakness of the dollar and the restoration of depressed Asian demand could also provide a helping hand to gold...............................................Full Article: Source
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