The experts at OCBC Bank with headquarters in Singapore have reconsidered their previous gold price forecast for 2016 from a pessimist to a more optimistic scenario.
Today, they hold that gold prices could reach the incredible figure of $1400. Why?
$1,150 as the minimum and $1,400 as the maximum
Barnabas Gan, the chief strategist for Oversea-Chinese Banking Corporation, has announced that gold prices can reach $1,400 per ounce in 2016.
It is worth noting that this new maximum is far higher than the previous one indicated in his forecast: $950. Now, $1,150 is only the minimum.
Gold prices: 15% growth
As the expert stated, at the beginning of the year gold has had a stronger price dynamics than other commodities.
A world economy characterised by low interest rates and a fall in oil prices has favored the growth of gold prices.
In figures, since the beginning of 2016 gold prices have climbed by 15%, whereas global markets dropped by 7% and oil prices fell by16%.
All this leads investors to invest in gold and banks to make to have a more optimistic view when making forecasts.
The new superhero
$1,150 per ounce is the level gold can easily maintain, in the view of OCBC. Yet, an upward trend continues and the bank has forecasted $1,400 as the maximum price gold can reach in 2016.
The main expert of OCBC Bank of Singapore named gold a “superhero.” Despite this affectionate nickname, Bloomberg News does not deny the seriousness of the Singaporean bank and reminds that their forecasts are considered some of the most precise at international level.
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