GOLD: Analysts Predict $1000 Gold In 2016, Federal Reserve officials on Wednesday continued to flag December as a likely time for interest rates to rise after seven years near zero, with two expressing confidence they will be able to pull off a rate hike smoothly despite fears of an abrupt market reaction.
Precious metals are expected to slide below the $1000 level in the first half of 2016 after the Federal Reserve raises interest rates and the US dollar gains, according to BMI Research, a unit of Fitch Group. Expectations for gradual tightening will cushion the fall, with prices then returning to trade at about 1,000 and above, said John Davies, global head of commodities research.
Goldman Sachs said last month a December rate rise would probably hurt bullion. Goldman forecast gold at $1,050 in six months and $1,000 in a year as rates climb, according to an Oct 21 report. Renee Haugerud, founder of New York-based hedge fund Galtere, said in an interview on "Bloomberg” this week, bullion may fall to $900 to $1,000 due to the rising US dollar.
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