by Lawrence Williams, MineWeb.com :
Analysts at the French Bank Societe Generale (SocGen) in their latest research report have forecast that the gold price, having given away all its early year gains, was headed sharply lower, as it saw the dollar continue its gain in strength. They thus expected the bear market in gold to continue further and saw the price as falling to average only $925 an ounce between 2016 and 2019. The timing of this report was perhaps unfortunate in that the forecast for a virtually immediate downturn in gold, together with dollar strength, predated the events of the past few days, which has seen the reverse occur. Gold bulls will be fervently hoping that the bank’s analysts are equally incorrect in their forecast of gold’s longer-term prospects.
While the bank actually raised its average forecast for the current year to $1,130/oz from its earlier $1,025/oz because of the higher than expected gold price performance during Q1, it expects the price to only average $1,150 during Q2, falling gradually to $1,050 by Q4.
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