Gold To See Support In January, Then Prices To Soften: CPM Group

In its first week of January, gold is seeing some more safe-haven buying and short covering since decent gains were posted at the start of the week. Unrest in the Middle East and weak Chinese economic data released this week have worked in favor of the yellow metal. ‘We tend to see precious metals go up in the first couple of months of the year,’ says Rohit Savant, director of research for New York- based research firm, CPM Group. ‘We have seen this happen and I wouldn’t be surprised to see prices soften in the later half of this quarter,’ said Savant in an interview with Kitco News. Savant explained that the U.S. Federal Reserve decision to raise rates took weight off of the precious metals, ‘there isn’t this uncertainty that is holding prices down,’ he said. Savant added, ‘We dont see a lot of downside to the precious metals from where we are now but we don’t see prices going up strongly either. We do think the $1,045 -$1,050 level would be the low end of where prices go.’ Supporting gold prices will be the increase in demand from India, ‘there are a lot of marriage dates in February – given the relative softness of prices and the marriage season you might see some uptick – this month could see strength ,’ he said. Kitco News, January 6, 2016 (show less)

In its first week of January, gold is seeing some more safe-haven buying and short covering since decent gains were posted at the start of the week. Unrest in the Middle East and weak Chinese economic data released this week have worked in favor of the yellow metal. ‘We tend to see precious metals go up in the first couple of months of the year,’ says Rohit Savant, director of research for New York- based research firm, CPM Group. ‘We have seen this happen and I ... (read more)

 
 
Outlook 2016

Outlook 2016
Every December, Kitco News launches its Outlook series, giving viewers the opportunity to learn what the experts think markets will do in the coming year. Outlook 2016 will cover topics ranging from the global economy, U.S. dollar and, of course, gold and silver. Tune in to hear the opinions of some of the most well known names in the industry and don’t forget to catch all our Outlook coverage – including the very popular “Invest Like The Experts” series – here on Kitco. Enjoy and happy holidays!

 

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