Gold Falls to Pare Three-Week Rally as Goldman Cuts Forecasts

European Stocks Rise Third Day Amid Expectations of ECB Stimulus
Gold Falls, Trimming Three-Week Gain as Goldman Cuts Forecasts

Gold Falls to Pare Three-Week Rally as Goldman Cuts Forecasts


Equityworld Futures – Gold futures fell, paring gains from a three-week rally, as Goldman Sachs Group Inc. said low inflation and higher U.S. interest rates will drag down prices later in 2015.

Goldman pegged the metal at an average $1,089 an ounce for 2016 and $1,050 in 2017, both down from $1,200 forecasts. Gold will be supported at current levels for the next few months because of weaker-than-expected U.S. economic data and more stimulus from the European Central Bank, the New York-based bank said Friday in a report.

Gold futures for February delivery declined 0.6 percent to settle at $1,292.60 at 1:52 p.m. on the Comex in New York. On Thursday, the price reached $1,307.80, the highest for a most-active contract since Aug. 15.

The Stoxx Europe 600 Index rose on Friday to the highest since December 2007, and the euro pared declines against the dollar, eroding the appeal of gold as an alternative asset.

This month, gold has jumped 9.2 percent as stagnating economies challenged policy makers to find new ways to buoy growth. ECB President Mario Draghi pledged to buy 60 billion euros ($67 billion) of debt a month through September next year.

Silver futures for March delivery fell 0.3 percent to $18.30 an ounce. This year, the price has jumped 17 percent, the most among 22 raw materials in the Bloomberg Commodity Index.


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