The gold price ended last week below $1,100 per ounce, but this week was back above that level once again. It rose as high as $1,106.20 on Wednesday, and since then has bobbed above and below the $1,100 mark — as of 12:00 p.m. EST on Friday it was changing hands at $1,098.80.
Commenting on this activity in the gold space, Kitco states that Friday has brought fewer safe-haven buyers into the market. A firmer US dollar index “is also limiting the upside in the precious metals markets.”
Unfortunately for gold bugs, many market watchers don\’t believe gold has reached the end of its troubles — this week, a number of firms released updated gold price forecasts, and for the most part they are not overly optimistic.
For instance, ICBC Standard Bank said in a note this week that it sees the precious metal averaging $1,060 this year, down from its previous forecast. Meanwhile, BNP Paribas (EPA:BNP) said in its own note that it sees gold averaging just $960 in 2016 — also a reduction from its previous call.
| Updated December 2015
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On a more positive note, Citi Research recently upped its 2016 average gold price forecast to $1,070. “Gold’s safe-haven rationale is back in vogue for the time being on fears of further China macro contagion, whipsaw equity markets and geopolitical issues in the form of rising Arabian Gulf tensions,” said the firm. Nevertheless, it is advising wariness about the US dollar.
For its part, the silver price fared much the same this week as it did last week. The white metal\’s high for the week came Friday when it hit $14.30 per ounce, and its low of $13.88 came on Monday.
Commenting on the silver price, DailyFX market analyst Alejandro Zambrano said Thursday that the metal is “trapped in