Bloomberg reported that even though 2014 has brought gold’s best start to the year since 1983, the two most accurate gold price forecasters are holding to their bearish outlooks for the year.
As quoted in the market news:
‘I just see this as a corrective move,’ said Robin Bhar, the head of metals research at Societe Generale SA in London and the most-accurate forecaster tracked by Bloomberg in the past two years. ‘We would still want to be bearish gold,’ said Bhar, who expects a fourth-quarter average of $1,050.
‘Haven demand plays well when gold is cheap, but it’s no longer cheap,’ said Justin Smirk, a senior economist in Sydney at Westpac Banking Corp. and the second most-accurate forecaster tracked by Bloomberg in the past two years. ‘I’m a little surprised by the volatility in the market, but it really doesn’t change my overall view,’ said Smirk, who expects a slide through the year to a fourth-quarter average of $1,020.