Gold Price "Will Average $1200 by 2015" Says RBS
The Gold Price will decrease over the next three years to sink under $1200 per ounce, according to a major bank's precious metals analyst.
Nikos Kavalis, strategist and analyst at the UK retail bank Royal Bank of Scotland Group, said earlier this morning during an interview with Indian broadsheet, Daily News and Analysis (DNA) that "By 2015, we expect the Gold Price will average significantly below its current levels, at $1200 per ounce.
"As the roadmap to more normal macroeconomic conditions is laid, we believe that more attractive opportunities will emerge for investors and, eventually, higher interest rates will also reduce gold's appeal."
At Kavalis' target, the Gold Price will have fallen below its level in 2010. It also means a decrease of 26% compared to the current price of $1620 per ounce.
However, the banking and financial services company HSBC contradicts Kavalis by saying that the Gold Price will attain $1900 per ounce this year.
"The possibility that the Federal Reserve and other central banks may loosen monetary policy later this year is potentially supportive of gold, in our view," says HSBC in a note.
"Government policies aimed at keeping real interest rates negative are especially positive for gold."
Furthermore, financial services and investment banking corporation TD Services expressed "a very positive view on gold longer term," forecasting a Gold Price of $1800 per ounce in the final 3 months of 2012
"We see more Fed accommodation [from the US central bank] and a European Central Bank that will be eventually forced to backstop the European sovereign-debt problem," TDS said.
Looking to Buy Gold today...?