Gold likely to average $1,475 an ounce during Q4 2016

UNITED STATES August 16 2016 3:07 PM

NEW YORK (Scrap Register): Credit Suisse has reiterated its late-June outlook that gold will rise to $1,475 in the fourth quarter. The view was included in a research note citing highlights from the World Gold Council’s report this week on quarterly demand trends, which showed that second-quarter demand rose from a year ago. 

Credit Suisse said in its outlook is “primarily due to continued investment demand through ETF (exchange-traded-fund) purchases and bar/coin hoarding on prolonged macro uncertainty and negative real interest rates – (with) 39% of sovereign debt traded with a negative rate on July 27th -- along with our view for declining mine supply.” 

As of Monday, the third-quarter average price of $1,347.50 an ounce “thus far is tracking in-line with our $1,350/oz forecast for Q3,” the bank added.