Barclays sees Gold to avg $1220 an ounce in Q4

UNITED STATES September 22 2014 6:03 PM

 

NEW YORK (Scrap Register): Barclays expects gold prices to average $1220 an ounce in the fourth quarter of this year, as a stronger dollar overshadows the seasonal pick-up in gold demand and safe-haven buying. 

 

While a weaker gold price is likely to create a hurdle for the rest of the complex, Barclays expects platinum and palladium to average $1400 an ounce and $850 an ounce, respectively, in in the fourth quarter with platinum finding support at lower levels, as jewellery demand remains price-sensitive while industrial and auto demand cushion palladium.

 

According to Barclays, gold has benefited from a safe-haven bid, albeit to a lesser extent than safe-haven currencies, which has weakened the correlation between gold and the dollar. 

 

Without the safe-haven bid gold prices would be under much greater pressure, given the magnitude of the dollar’s ascent, they added.