Gold Falls, Trimming Three-Week Gain as Goldman Cuts Forecasts

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

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

Goldman cut its estimates for 2016 and 2017, predicting that prices will average $1,089 and $1,050 an ounce, according to a Jan. 23 report. The New York-based bank said bullion will be supported at current levels for the next few months, citing weaker-than-expected U.S. economic data and more stimulus from the European Central Bank.

Bullion for immediate delivery declined 0.6 percent to $1,294.47 per ounce at 11:06 a.m. in London, according to Bloomberg generic pricing. Prices are near the highest level since August after climbing 1.1 percent this week.

Gold has jumped 9.3 percent this year 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) every month through September next year in a push to put more cash in circulation and revive inflation.

Federal Reserve policy makers meet next week to discuss interest rates as inflation hovers below a 2 percent target and the economy shows improvement.

Gold for February delivery dropped 0.4 percent to $1,296.20 on the Comex. Traders and analysts surveyed by Bloomberg were positive on gold for the eighth straight week, with the number of bullish responses outstripping bearish ones by 15 to 8.

Silver for immediate delivery retreated 0.5 percent to $18.2508 per ounce. Prices are set for a third weekly increase, the longest rally since July. Palladium fell 0.6 percent to $772 per ounce. Platinum lost 0.8 percent to $1,275.70 per ounce.

Sumber : ewfpro.com

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