Gold price to make a comeback
Dubai: The yellow bullion will continue to weaken in the early part of 2016, with prices forecast to break below $1,000 an ounce, but gold bugs have a reason not to lose hope.
Rolf Schneebeli, CEO of Gold Services AG, said that the precious metal could regain some of its lustre anytime, especially if inflation fears resume.
“In the US, we already see the economy starting to perform nicely, including an increase in inflation. When the European economies do the same [perhaps] in one to two years, then we could see the inflation fear coming back to the market and the trend of the gold price might change,” Schneebeli told Gulf News. “In the meantime, gold will react to any political issues,” he added.
Gold prices have fallen significantly due to rising expectations of a Federal Reserve interest rate increase, coupled with a stronger US dollar.
As of Thursday morning, 24-carat gold was retailing in Dubai at Dh128 per gram, down by Dh1.50 from Sunday and Dh13.50 from October’s peak price. The price for 22K was pegged at Dh121.25, while 21K and Dh18K traded at Dh116 and Dh99.50, respectively.