By Paul Ploumis (ScrapMonster Author)
November 09, 2015 03:10:19 AM
(Kitco News) - In the wake of a strong U.S. employment report Friday, one U.K.-based research firm has re-valuated its gold and silver price forecasts lower in the short term, although expecting prices to recover next year.
In a research note Friday, analysts from Capital Economics say the reason for this change is mainly due to the fact that a December interest-rate hike in the U.S. now seems more possible post-jobs.
“A fall to $1,050 by end-2015 would be consistent with a further rise in two-year Treasury yields to 1% and some additional strength in the U.S. dollar against other major currencies,” they say with regards to gold prices.
For silver, the analysts note that they see the metal moving down to $14.50 an ounce by year-end, but moving to around $20 in 2016.
For gold in particular, the analysts noted that “whether U.S. interest rates end next year at zero or 2% will make very little difference to the demand for gold from key emerging markets, which should still pick up again."
The analysts add that they expect gold prices to be around $1,400 an ounce by end-2016.
Courtesy: Kitco News