UNITED STATES January 11 2016 10:10 PM
NEW YORK (Scrap Register): Barclays said that they maintain their price forecast of $1,054 an ounce for gold in 2016.
Gold rallied last week amid a global sell-off of risk assets, triggered by China equity and FX markets, said the British bank.
However, China showed signs of stabilization after the circuit breaker was suspended. Moreover, the solid December U.S. nonfarm payroll data report suggests a healthy U.S. economy. Barclays maintains their price forecast of $1,054 an ounce for 2016.
Barclays currently lists a neutral view for gold on the basis of macroeconomics, foreign exchange, investor flows and fundamentals, but a bearish view based on technical charts.
Gold is likely to lose further ground as higher U.S. yields draw investor flow away from the precious metal, said Barclays.
“Low levels of inflation helped by cheaper oil prices will also provide a bearish backdrop for the yellow metal. A move below our initial downside targets near $1,033/1,043 would signal lower toward greater targets in the $946 area,” analysts at Barclays added.