Gold May Drop Below $1,200 in Coming Months - GFMS
GFMS analysts at Thomson Reuters noted in their latest report published on Thursday, gold prices are expected to drop below $ 1200 – psychological barrier in near term amid Fed rate hikes and softening physical demand.
Key Headlines from the report:
Following three consecutive years of annual price declines, gold has recorded a blistering start to 2016
Such an impressive performance has been largely attributed to a reduction in risk appetite among investors and fresh interest in safe haven assets
We believe that the recent price rally will prove to be short-lived, and once current market turbulence starts to ease, we are likely to see the price retreat again, particularly as physical demand in key Asian markets is already weak
The biggest drag on China's annual gold demand last year mostly took place during the first half, when the strong performance of the domestic equity market ... attracted much of the society's capital into the stock market.
(Market News Provided by FXstreet)
