STANDARD & CHARTERED BANK, BANKER
BEARISH on gold in the short term, averaging $613/oz in 2007 but breaking out in 2008 to average $675/oz.
“The strength of the US dollar completely dominates the gold price. We believe gold will peak in the first quarter of 2007 as the markets anticipate further US Fed interest rate cuts. Thereafter, we’re in for a bout of dollar strength as the emphasis falls on growing the US economy. Expect gold to average $640/oz in the first quarter; $620/oz in the second; $590/oz in the third quarter, and $600/oz in the fourth quarter.”