ABN Amro NV is warning investors that the selloff in gold is poised to deepen as the U.S. dollar will likely extend gains, Bloomberg reports.
ABN is forecasting that gold prices will fall to $1,100 an ounce to end 2014, then will continue to fall to $800 an ounce to end 2015.
“Don’t try to catch a falling knife,” ABN analyst Georgette Boele said in a report. “The U.S. dollar rally has further to run, especially if the Fed turns more hawkish this year.”
The price of gold is down around 5% this year and have fallen to the lowest level since April 2010.
Physical holdings of bullion held by of the biggest bullion-backed ETF, the SPDR Gold Trust ($GLD), fell to 738.8 metric tons on Tuesday, which is the lowest since September 2008 during the collapse of Lehman Brothers.
The precious metal is poised for its first back-to back annual decline since 2000 as the U.S. Fed ended its bond buying scheme and is moving closer to hiking interest rates.
Source: Bloomberg
Thanks very interesting blog!
LikeLike