Gold will drop in each of the next four quarters and reach a four-year low as reduced U.S. stimulus in response to faster economic growth curbs demand for bullion as a haven, the most accurate forecasters said.
Gold prices rallied to $1,643 per ounce by Tuesday lunchtime in London – 1.2% up on yesterday's low, but still shy of where they closed last week – ahead of tomorrow's Federal Reserve decision and with euro zone concerns focusing on the Netherlands.
At that half way mark of 2011 a handful of precious metal price forecasters are proving hard to dislodge from the top rankings. Two have been especially prominent in maintaining their overall high rankings despite considerable volatility.
Gold and silver are marginally lower today in all currencies, but recent action suggests we may have seen capitulation and are in the process of bottoming out. Physical demand remains robust as jewelers and investors buy on the dip.