Analysts are predicting that gold in next year will be a risky, with many of investment banks has cut their outlook for the metal.
On Friday Bank of America Merrill Lynch has also decreased its estimate for gold for the next year, with a decreased of 17.2% to $1,294 on each ounce.
Analysts Daniel Lian, has stated in his note that gold costs have become constant and the prices might continue hold up as the United States reaches the debt upper limit. Still, the analyst thinks the centre of attention of many investors remains resolutely on a slow normalization of U.S. monetary plan. Therefore, the base case estimated sustainable headwinds to the precious metal prices.
He also added in his comment that agreed to the unfolding recover of world economic development, he considered the other precious metals, like silver, are likely to surpass gold. The firm is skittish on gold for short-term, while the firm in long-term will remain bullish.
Merrill Lynch forecast for gold decreased 17.8% to $1,356 for 2015. While for 2013 the firm predicts a decrease 4% to $1,419, as compare to its forecast for the same period.
Bank of America Corp (NYSE:BAC) Merrill Lynch predict that silver will end at $24.31 on each ounce till the end of current year, the bank current estimate is little bit above its previous estimate. While for next coming year silver is expected to decrease 4.5% to $26.38 on each ounce by the estimate of the firm, which also say the in 2015 sliver will be $31.53 on each ounce
Other analyst firm has also predict the outlook of gold, Last week Morgan Stanley predicted an average price of gold till the end of the year will be $1,200 to $1,350 each ounce. While in recent announcement Citigroup analysts has declared that gold prices will decreased lower than $1,250 on each ounce till the end of 2013.
The week prior, Goldman Sachs also downgrades the outlook of the gold for 2014. Jeffrey Currie head of commodities research has also predict the gold at $1,000 on each ounce.