×
Newsmax TV & Webwww.newsmax.comFREE - In Google Play
VIEW
×
Newsmax TV & Webwww.newsmax.comFREE - On the App Store
VIEW
Tags: UBS | gold | Fed | dollar

UBS Strategists: Gold Headed to $1,050 an Ounce

By    |   Tuesday, 16 September 2014 01:56 PM

Gold recently dropped to an eight-month low amid speculation that the Federal Reserve will raise interest rates sooner than expected. And some market participants say the move has further to go.

December gold futures traded at $1,237.20 an ounce Wednesday morning on the Comex.

"Any indication of the Fed normalizing its monetary policy faster would spur more broad-based U.S. dollar strength and provide room for gold prices to drop toward our 12-month forecast of $1,050," UBS strategists Giovanni Staunovo and Dominic Schnider told CNBC.

Editor’s Note:
New Warning - Stocks on Verge of Major Collapse

CNBC's latest survey of 30 strategists, analysts and traders showed that 63 percent of them expect gold prices to fall this week, and 30 percent expect prices to rise.

As for the Fed, a new survey of fund managers from Bank of America Merrill Lynch shows that 48 percent of those surveyed believe the central bank will raise rates in the second quarter of 2015, up from 38 percent in August.

Anthony Grisanti, president of GRZ Energy, said in a Sept. 15 commentary obtained by CNBC that gold will test the $1,200 level and trade as low as $1,190, "after which the bargain-hunters will come in and move the price back to the $1,240 to $1,250 level."

"Geopolitical has been quiet and all major economies are easing one way or another. And that makes the Greenback the strongest buck on the block. My bias for gold is lower," he noted.

Meanwhile, gold's 60-day historical volatility has dropped to an almost-four-year low, according to Bloomberg.

"People have left the party as the gold story becomes boring for many investors," John Stephenson, portfolio manager at Stephenson & Co., told the news service.

"The world is not falling apart, and the market has shrugged off the political developments. At a time when higher interest rates are knocking at the door, people don't see the need for gold."

Editor’s Note: New Warning - Stocks on Verge of Major Collapse

© 2021 Newsmax Finance. All rights reserved.


Finance
Gold dropped to an eight-month low Monday amid speculation that the Federal Reserve will raise interest rates sooner than expected. And some market participants say the move has further to go.
UBS, gold, Fed, dollar
332
2014-56-16
Tuesday, 16 September 2014 01:56 PM
Newsmax Media, Inc.
More Articles
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
TOP

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
America's News Page
© Newsmax Media, Inc.
All Rights Reserved
NEWSMAX.COM
America's News Page
© Newsmax Media, Inc.
All Rights Reserved