Analysts with Barclays reiterated they still look for gold to average $1,170 an ounce in the fourth quarter and $1,215 next year.
“Gold is at the mercy of
the U.S. rate decision amid an uneventful physical market,” the bank
says. The Federal Open Market Committee did not increase rates in September and few analysts suggest it will raise borrowing costs before the year-end. The timing of the first rate hike in almost a decade remains
uncertain.
Barclays suggests the first hike will happen in March, adding that gold should find
support if there is no Fed rate move in December. Indian and
Chinese jewelry demand has been weaker, the bank adds.
“We maintain our
price forecast of $1,170/oz for Q4 and $1,215/oz for 2016,” Barclays
says.
“We believe that in the current price range, gold will trade based on U.S. data, with the physical balance largely unchanged.”
December Comex gold last traded at $1,164,80 an ounce, down 0.12%.
December Comex silver was last seen at $15,840 an ounce, down 0.41%, while Comex copper for December delivery added 0.28% to trade at $2,364 a pound.
