Tags: gold | metal | Gero | economy

Experts: Gold Will Rise Next Year

By Kristin Caliendo   |  

The bearish sentiment in the market could trigger a turnaround for gold to bounce back in the new year.

"Next year could be a totally different picture for gold," George Gero, precious metals strategist at RBC Capital Markets, told CNBC.

As the sentiment turns around and fundamentals improve, Gero suggests, there will finally be a bottom under the precious metal.

Editor's Note:
Get Tom Luongo's Gold Stock Adviser — Click Here Now!

"Every analyst I've been seeing or talking to in the past month has gotten pretty bearish because of the price action. And as open interest has shrunk along with the price, a lot of money has been allocated out of gold and to the stock market," he explained.

"There hasn't been too much inflation to make gold investors jump in at lower prices and bargain hunt. But I believe that you could find some reallocation to gold next year, because the lack of inflation could be disappearing."

Former hedge fund manager Mark Dow has been spot on in his bearish gold and silver predictions and he agrees that the precious metals are set for a bounce.

Stocks have been a better investment relative to non-interest-bearing assets like gold due to a 26 percent decline in the precious metal so far this year.

"If you look at the sentiment and the futures positioning, there are record-low gold longs — in fact, it's almost net flat, and that's something we haven't seen in a long, long, long time," Dow said.

However, not everyone believes in the precious metal.

Goldman Sachs believes commodities such as gold, iron ore, soybeans and copper would probably drop 15 percent next year even though the U.S. economy is thriving, Bloomberg reported.

Goldman predicts gold will drop to $1,050 at the end of next year.

Editor's Note: Get Tom Luongo's Gold Stock Adviser — Click Here Now!

Related Stories:

© 2015 Newsmax Finance. All rights reserved.

1Like our page
2Share
Markets
The bearish sentiment in the market could trigger a turnaround for gold to bounce back in the new year.
gold,metal,Gero,economy
330
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
© Newsmax Media, Inc.
All Rights Reserved