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HSBC strategists lowered Monday their average annual gold price forecasts for this year and next, warning that gold prices are likely to remain under pressure in the short term and may “move within striking distance of $1,000” an ounce before recovering.
HSBC lowered its 2015 average annual price forecast to $1,160 from $1,234 and for 2016 to $1,205 from $1,275. Among the reasons for gold’s recent selloff is the “drift towards Fed tightening and the associated USD strength, low global inflationary pressure, weak gold demand from India and China and market positioning and momentum,” HSBC strategists said. August gold GCQ5, -0.40% settled at $1,096.40 an ounce on Comex Monday.
Source: MarketWatch
