Finance

Annoying Prediction: Gold Prices Will Drop To These Levels In December!

The gold market is doing well, but according to one market strategist, it faces competition from rising interest rates, a hot stock market and the resilient strength of the US dollar. An ounce of gold changes hands at $1,822. Marc Chandler, managing director of Bannockburn Global Forex, said the precious metal started July in solid form and today is only the third day of decline in the past 12 days. However, he gave a medium-term forecast for gold prices and said he does not think the precious metal will rise above the critical resistance of $1,850 per ounce.

Strategist: Gold prices will see $1,750 by the end of the year

Chandler said that he thinks gold prices will see a process around $1,750 per ounce by the end of the year. He added that gold is stuck in a wider range in the middle of $1,500 to $2,000 an ounce. Chandler pointed out that there is not much new information to raise gold prices and that the current environment is more favorable for stock markets, the US dollar, and added:

I’m not so sure that gold does what people think it does when we compare it to a new financial industry and passive investment, such as traded funds.

Chandler: I don’t feel very positive about value metal

Chandler said that while there are strong economic growth prospects for the remainder of the year, he is not confident these claims will be met. He described the current economic momentum as a discontinuous one. He added that he saw signs that the global economy had reached its peak:

When we talk about 3 percent growth in the second half of next year, we will be behind. So by the end of this year, if the economic development in the world will slow down, I should set a goal of 1.750 dollars for gold. I’m not so positive about gold, not because of debt levels or unsustainable valuation levels in other asset markets, home prices, or stocks and bonds, but I’m more concerned that a general economic slowdown will reduce venture capital.

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