Bloomberg report on the views of Barnabas Gan, an economist at Oversea-Chinese Banking Corp (OCBC)
- Says the Federal Reserve will still raise U.S. interest rates this year and that'll hurt gold
- "The Fed rate hike story is the key reason as to why we are holding our bearish view for gold at $1,050 an ounce at the end of the year"
- "The Fed rate hike, if it happens either in September or December, will really be the factor that market watchers are actually looking for"
- The increase in U.S. borrowing costs "will translate into a stronger dollar and, vice versa, will translate into weaker gold prices"
Bloomberg add that OCBC was the most accurate precious metals forecaster over the past three quarters (according to rankings complied by Bloomberg).
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Hmmm ... Tough call to make in the last week or so for the improving gold price.
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Anyway ... if you want to try your hand at trading, not forecasting, check out this from Greg: ForexLive webinar: Do you believe what you see in your forex trading?
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