Gold Price in 2015/2016

Here is an interesting take on what big financial companies had to say about the gold price. Let's see what their opinions are and how well they managed to predict the price so far - 

Murenbeeld of Dundee Capital Market said he sees the yellow metal averaging $1,202 in the first quarter, rising to $1,277 in Q4 and then hitting $1,311 in the second quarter of 2016. Other firms have come forward with similar predictions. A recent Kitco News article notes that Commerzbank (ETR:CBK) expects gold to average $1,200 in 2015, while Citi Research places it at $1,220. Meanwhile, TD Securities has set it at $1,225 and Natixis (EPA:KN) is estimating $1,140. The consensus of many firms seems to be that, similar to silver, gold will be weaker in the first half of 2015 as investors wait for the Fed to raise interest rates, with that pressure dissipating as the year comes to a close.

It’s interesting to note that while Thomson Reuters’ short-term gold price predictions are relatively in line with those from other firms, not all have the same longer-term outlook for the precious metal. For instance, in a recent article, Mineweb’s Lawrence Williams points out that Goldman Sachs (NYSE:GS) sees gold’s three-month average at $1,290, and its six- and 12-month averages at $1,270 and $1,175, respectively. However, it’s calling for the yellow metal to move down after that, ultimately averaging just $1,000 by the end of 2016.

Furthermore, Barclays (LSE:BARC,NYSE:BCS) anticipates an average 2015 gold price of $1,170, but like Goldman Sachs, it believes that while the yellow metal may enjoy some near-term strength, “the rally is likely to come under pressure in the coming months, after the Lunar New Year.” 

It’s too soon which — if any — of these scenarios will come to pass, but the differences in opinion are certainly worth keeping in mind.