Gold Predictions For 2015 Down As Gold Price Rises

It pays off to study a chart instead of listening to what others say. In other words, it does not matter what others say about markets because what matters is what markets say about others. That claim is the basis of our sister site www.ChartAnalyst.expert. The most reliable information is found in charts, and not in opinions (yes, even in manipulated markets). Case in point: this week’s relentless surge of the price of gold is taking place amid a tsunami of bearish gold predictions.

This week, we saw one bearish gold price prediction for 2015 after another, including:

  • Gold price may average $1,215/oz in 2015, possible low of $1,050/mt according to Mitsui (source)
  • Barclays is bearish on gold prices (source)
  • Gold Prices To Remain Weak In 2015 according to Bank of Montreal Capital Markets (source)
  • UBS lowers precious metal price forecasts for 2015 (source)

That is four in a row from the biggest financial institutions in the world.

The most important arguments for the bearish predictions are rising interest rates, weaker oil prices, a strong U.S. Dollar. The strong demand out of Asia is expected to put have a limited impact, according to the predictions.

All those gold predictions are being released in the same week in which gold is going relentlessly higher. Ironically, today there was a flight to gold as a safe haven which was driven by the decision of the Swiss Central Bank to unpeg the Swiss Franc from the Euro. Spot gold was up 2.5% today, its best finish since it closed at $1,268.20 on September 5th.

Meantime, what is the gold chart telling us?

As explained in this gold chart analysis on ChartAnalyst.expert, gold is heading towards $1340 an ounce in the short run. According to Matthew Weller, gold is pressing against the 50% Fibonacci retracement of last year’s drop at 1261, and with the RSI indicator near overbought territory, a near-term consolidation or pullback is definitely possible. The measured move target of the inverted H&S pattern comes in at $1340, so gold rallies are still favored as we move through the rest of the Q1 as long as the yellow metal can hold above its 200-day MA at $1250. This is the accompanying chart:

gold_price_technical_15_January_2015

 

This is basic analysis of key technical indicators on a chart. The benefit of listening to the message of the chart is that it is objective. The interpretations can somehow differ, but the data points are objective.

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