Strong economic data sends prices down
October 6, 2014: With US unemployment rate below 6% for the first time since 2008, gold prices have gone negative for the year and tumbled below $1,200 an ounce.
Gold opened 2014 trading at $1,207.80 an ounce and approached the $1,400 mark in March. However, the release of relatively strong economic data has sent bullion lower and lower ever since.
“We are lowering our near-term gold and silver price forecasts, due to a combination of US dollar strength, relatively soft physical demand and strength in the broader equity markets. We now assume a broad $1,150 to $1,350 trading range for the next three years and maintain our $1,400 long-term gold price forecast,” wrote RBC analyst Stephen Walker in a research note on Friday morning.
Walker has a $1,285 price target for gold in 2014, $1,300 for 2015 and 2016, $1,350 in 2017 and says it won’t hit $1,400 until 2018.