Gold may drop further to $1,000 an ounce in a year

UNITED STATES November 20 2015 12:19 PM    

NEW YORK (Scrap Register):  Goldman Sachs looks for more gold weakness over the next 12 months, calling for  $1,000 an ounce a year from now.

The American bank looks for general  commodity weakness to continue over the next year, keeping us underweight  commodities during that time frame.

Eventually, however, Goldman looks  for much better commodity returns once the global economy shifts into the next  phase of the business cycle – recovery.

For gold, specifically, Goldman  writes: “We continue to expect further dollar strength and believe a gradual  increase in U.S. real rates will push gold prices lower over the next 12  months….Since peaking in October, gold has fallen by 8% on the back of an  increase in the probability of a Fed hike in December following the  stronger-than-expected (October) non-farm payrolls report. Our gold forecasts  remain $1,100/oz in three months, $1,050/oz in six months and $1,000/oz in 12  months.”