Gold to slump to $1,400 by spring, oil prices to continue growing
”In the second quarter of the year, the price of gold is likely to reach $1,400 per troy ounce, which, given favourable fundamental factors, can lead to purchases and a subsequent period of price increase,” showed a forecast of ELANA Trading.
According to experts from Saxo Bank, the general factors behind the increase in the price of gold will be in force again after the correction and the price of the precious metal will rise to $1,800 per troy ounce in the first quarter of the year. Against this background, oil prices will continue growing.
Experts from Elana Trading predict a price of $115 per barrel in late 2012, and those from Saxo Bank expect about $100 per barrel in the first quarter of the year and a tendency towards a price increase throughout the year. Oil prices will depend on the political stability in oil exporting countries. The embargo imposed on oil exports from Iran is the main reason for the rise in oil prices in recent days. Even higher prices may be recorded because Iran is one of the largest exporters of oil.
“IMF forecasts that oil prices may increase by $30 a barrel,” said Plamen Peichev, Chief Dealer at Trader.bg. Regarding the price of gold, it will depend on the inflation and the unemployment rate in the USA. "On Wednesday, the US Federal Reserve announced that they are prepared to provide an additional monetary stimulus, if the unemployment rate remains high. Immediately after this information became available, gold prices recorded a jump of $50. If fresh money has to be poured into the economy, a depreciation of the dollar can be expected," explained the expert.
It turns out that, in 2011, gold was the most traded product on the Trader.bg platform, with 29% of all transactions. "The interest in gold grew by 107%, compared to 2010. And if one or two countries go bankrupt, it may increase further. If we receive good news from the south, it is likely for traders to start selling gold because they will expect a price decline and might shift their focus to higher-risk investments such as stocks and indices," explained to Klassa daily Peichev.
Text and photo: www.klassa.bg
(27.01.2012)