Supply concerns bumped the red metal’s price up 2 percent on Wednesday.
But prices for gold, silver and oil all rose.
But some believe a rebound could take place in the next year or two.
Following a precipitous drop in the gold price on Friday, UBS has lowered its price target for the yellow metal, and it isn’t the only firm seeing additional pressure for gold. Although the gold price rose every so slightly during Monday trading hours, it remained around $1,168 per ounce, or
COMEX gold futures for December delivery hit a four-week high of $1,156.40 per ounce on Thursday.
Economic growth concerns and the US Federal Reserve’s decision not to raise interest rates boosted the gold price this week.
Investors turned to gold this week on the back of China’s devaluation of the yuan. Some market watchers are now betting that China’s move will prompt the Fed to keep interest rates low.
Platts reported that UBS AG (NYSE:UBS) has reduced its one-month silver forecast by 10 percent, to $14 per ounce.
Platts reported that UBS AG (NYSE:UBS) analyst Joni Teves said Monday that the bank has cut its one-month gold price forecast to $1,050 per ounce. That’s a reduction of 13 percent.
The release of Chinese gold reserves data last week revealed that the Asian nation has been the second-biggest buyer of gold in the last six years. According to Bloomberg, analysts and traders believe that the country’s buying is set to continue.
Reuters reported that small Australian miners are being hit by the 30-percent nickel price slump that’s hit the market this year. Some have had to delay projects and expansions.
China is moving in on the gold market. Last week, a Chinese bank was finally added to the LBMA gold price last week, and this week China revealed that it’s looking at launching a yuan-denominated gold fix by the end of the year.