Gold struggled to build on overnight gains on Wednesday as equities rose on optimism over the US economy, while traders nervously awaited cues from the dollar and a Swiss referendum on central bank gold reserves. The gold market has been in a tight range this week, lacking direction ahead of the US Thanksgiving holiday on Thursday and the Swiss referendum on Sunday.
Societe Generale cut its forecast for gold and said prices would average $1,150 an ounce in the fourth quarter and $1,025 next year. "We expect the gold price to continue to fall as the dollar strengthens further and the gold bear market continues, leading to the metal averaging just $862 between 2016 and 2019," Societe Generale analyst Robin Bhar said in a note. Spot gold was little changed at $1,200 an ounce by 0718 GMT, after gaining 0.3 percent in the previous session.
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