Closely followed gold market commentator Martin Murenbeeld – chief economist at Dundee Capital Markets – has issued his predictions for the price of the metal next year.
Murenbeeld’s outlook is bullish, although any gold price gains would be fairly modest: From an average of just over $1,200 in the first quarter 2015 gold is predicted to rise to $1,277 at the end of the year and back above $1,300 by Q2 2016.
Moreover, Murenbeeld thinks the gold market may be “finally turning” and the price could overshoot on the upside as quoted in MiningMx:
“We are more bullish than the actual numbers suggest, which results partly from the judgement that 2015 will see more financial and geopolitical fireworks.”
[..] crises present an unknown positive risk to the outlook: indeed it is very possible that the average gold price for 2015 will be higher than forecast (as happened in 2014) precisely because of the many crises looming on the horizon for 2015.”
Gold was having a bad start to the holiday season with February futures giving up 1.7% or more than $20 an ounce on Monday. In afternoon trade in New York an ounce of gold was exchanging hands for $1,175.90, levels last seen more than three weeks ago.