Gold Price Predictions for 2015
Let’s look at MBS Gold PricePredictions 2015. The year 2014 has not been kind to traders who like to bet long on gold. In November, the price plunged to about $1,130 an ounce, the lowest in four years. After that it quickly bounced back and has now stabilized around $1,200. There are indications that metal is consolidating for a move, which could be either downward or upward. In a market where so many known and unknown factors come to play, one can never be sure which way. So what does 2015 hold for gold?
Until 2002, gold was hovering just above $200. Then it began its climb, slowly until 2005 and then at an accelerated speed after that. It hit its first major resistance at $1,000 in 2008, whereupon it fell back to just below $700. But then the biggest recession since the Great Depression began that year and everyone scrambled to get a piece of the precious metal, the only investment with guaranteed return in times of trouble, or so it is believed. The result: gold price shot up and crossed $1,400 in 2010.
Your Years Gold Price Predictions
In order to move forward with our Gold Price Predictions, we have to understand the upward movement, which received another big impetus when the financial crisis peaked in the EU in 2011. After Fitch and Moody’s downgraded crisis-ridden Greece, Spain and France, the precious metal made the biggest upward movement in history and crossed $1,900 in August of that year. Experts were unanimously predicting that $2,500 an ounce was not far way. But that’s when the reversal began and market has been correcting since then. It has already corrected by about 39 percent. So now let’s look at more gold price predictions.
Now with 2014 over, gold is clearly consolidating around $1,200. This consolidation could be for either an upward bounce or continuation of the downward trend – depending on how you look at it. As can be expected, experts are divided into two camps. Those who are “bullish” claim that the metal has corrected far enough, it is oversold and it is gearing for a big bounce, which can happen soon. Those who are “bearish” claim that the metal still hasn’t corrected enough and may fall to $900 before recovering. As to who is right, only the future can tell.
What can drive gold price up? Historically, gold price has risen when interest rates are expected to rise. Interest rates are indeed expected to rise in 2015 since the US economy has more or less recovered and is back on track. However, any impact the rise in interest rates may have on the price of gold will be limited to a few hundred dollars. Gold price can also rise if there is another stock market crash. If that happens, the precious metal may break all resistances and head for the long-anticipated $2,500 mark. But that scenario doesn’t look like a possibility at this moment
Gold Price Predictions – Downturn
Conversely, what can pull the price of gold down? The state of global economy is looking very healthy. The US economy is expanding and the Europeans and Asians are not doing badly either. The recent financial crisis is beginning to look like the distant past. When times are good, people tend to give preference to investments like real estate and stocks. Another factor that can drive the price of gold down is the strength of the US dollar. Historically, a rising dollar has a sobering effect on the price of gold. But with the dollar index already so high, how far can it go?
As a technical trader and someone who had been closely following gold for several years, my personal view is that the metal is going to oscillate between $1,150 and $1.550 in 2015. The metal’s downward movement will be limited because it looks like it has formed a bottom and even bearish traders will be taking a wait and watch stance instead of selling further. On the other hand, the upward movement will also be limited because the global economy is humming along quite nicely, especially that of the United States, and other investment options are looking more attractive.