The gold market continues to hold onto support above $1,200 an ounce; however, one international financial institution thinks it is only a matter of time before prices fall another $100.
In a report published Tuesday, the World Bank said that it sees the entire precious-metals complex falling 7% this year, with gold leading the way with a decline of 8%. Gold prices are seen averaging $1,150 an ounce in 2017. The global bank sees silver prices falling 4% to average the year around $16.50 an ounce.
“Downside risks to the forecast are stronger economic growth and faster-than-expected increases in U.S. interest rates. Upside risks include geopolitical tensions, stronger demand in China and India, delayed rates hikes, and mine supply shortfall,” the World Bank said in its report.
Reference: Kitco
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