Gold Struggling To Break Range, Headed Into Weakest Quarter - BarclaysBy Kitco News
Wednesday June 10, 2015 09:07
As gold struggles to break its range, Barclays analysts say that the metal is headed into its hardest quarter yet. “We maintain the view that Q3 15 is likely to be the weakest quarter for gold, given that we expect the Fed to start increasing rates in September, but the potential downside is likely to be limited, given we enter the seasonally strong period for consumption,” they say in Barclays’ Gold Delta report Monday morning. “As we enter the seasonally slow period, physical demand is likely to offer a deflated cushion,” they explain. Looking closer at the eventual U.S. interest rate hikes, the analysts say they expect the Federal Reserve to make a move twice before the end of the year, which would help strengthen the U.S. dollar and, in turn, hurt gold prices. The report adds that Barclays expects gold prices to average around $1,190/oz this quarter and $1,183/oz for the year.
By Sarah Benali of Kitco News firstname.lastname@example.org