Analysts slash gold price forecasts after second quarter plunge – Reuters poll – by Peter Hobson and Sumita Layek (Reuters U.S. – July 23, 2018)

https://www.reuters.com/

A poll of 35 analysts and traders conducted this month forecast an average gold price of $1,301 an ounce in 2018 and $1,325 in 2019, from predictions of $1,334 and $1,352 respectively in a similar poll three months ago.

The revisions come after gold plunged from $1,365.23 in April to around $1,220, under pressure from a strengthening dollar, expectations of higher U.S. interest rates, a large decline in gold held by exchange-traded funds and a sell-off by speculative investors.

The stronger dollar makes gold more expensive for buyers with other currencies, while higher interest rates increase the opportunity cost of holding non-yielding bullion.

Poll respondents said the selling was overdone. “Gold should build a bottom over the coming months,” said Julius Baer analyst Carsten Menke.

“Medium to longer-term upside should materialise once growth and inflation concerns creep into financial markets, reviving safe-haven demand,” he said.

For the rest of this article: https://www.reuters.com/article/us-precious-poll-gold/analysts-slash-gold-price-forecasts-after-second-quarter-plunge-reuters-poll-idUSKBN1KD1HM

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