04/03/2015 – Gold prices are forecast to bottom out in 2015 after a two-year slide as the expected start of the Federal Reserve’s rate-raising cycle removes a key event risk from the market, consultancy Metals Focus said in a report on Tuesday.
Better prospects for gold sales in Asia, lower selling from Western investors, and a retreat in mine supply from record highs are likely to play into a stable market this year, it said.
Expectations for higher interest rates, which would lift the opportunity cost of holding non-yielding bullion while supporting the dollar, have been the chief factor pushing spot gold lower so far this year.
“We remain cautious of gold in the near term,” the company said in its Gold Focus 2015 report. “The end of the bear cycle however may well be in sight. Counter-intuitively, we see this as likely to come shortly after the Fed starts raising interest rates.” … read more