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CHICAGO Air Max Sale Outlet , Dec. 17 (Xinhua) -- The much heralded and anticipated interest rate increase by the
U.S. Federal Reserve for the first time in nearly 10 years materialized on
Wednesday. In electronic trading following the release of the Fed's statement,
gold prices fell from the settlement.
As of Wednesday, the most active gold contract had fallen by 9 percent since the end of 2014, indicating the precious metal settlement will very likely log a
third consecutive year of losses.
Heading into 2016, is gold going to bounce back from its multi-year lows as traders ceased to speculate about when the hikes would begin? Many investment
banks' predictions for 2016 suggest another tough year for gold amid low
inflation and higher interest rates in the United States.
In early July Nike Air Max 95 Mens Sale , Goldman Sachs' Jeffrey Currie, who told investors to sell in 2013 before the
metal's biggest collapse in three decades, has predicted gold prices could trade
below 1,000 U.S. dollars an ounce.
"We think we are in a structural bear market, not only in gold Nike Air Max 90 Mens Sale , but across the commodity complex, as the individual commodity stories are reinforcing to one another, creating a negative
feedback loop," Currie said in a late July interview.
Goldman Sachs, JP Morgan Nike Air Max 1 Mens Sale , Citi, ABN Amro, and Societe Generale all forecast gold prices will break down
below 1,000 dollars in early 2016, with the average price declining further from
2015 levels. ABN Amro' s forecast Nike Air Max Mens Sale , in one of the most bearish forecasts so far, suggests gold will drop to a low of
900 dollars or below during 2016.
HSBC, however, believe that gold will finally bounce back in 2016 after repeatedly hitting multi-year lows. The bank also warned that gold prices are
likely to remain under pressure in the short-term and may move within striking
distance of 1,000 dollars before recovering.
The 2015 weakness in gold is due to several events occurring together: lower inflation Air Max 95 Mens Sale , a surging U.S. dollar amid expectations that the Fed will increase interest rates,
and sluggish physical demand for the precious metal as global growth slows down.
These drags on gold in 2015 overwhelmed risk events, a major factor which sent investors running to buy gold, bringing the metal to a nearly six-year low.
Most of them (drags) will not disappear next year, and might show more strength
following a new Fed rate-hike cycle. In other words Air Max 90 Mens Sale , the downward pressure on gold will continue to outweigh the support for the metal in 2016.
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