BNP Paribas Lowers 2016 Gold Forecast

Kitco reported that BNP Paribas SA (EPA:BNP) has lowered its 2016 gold forecast. The firm now expects the yellow metal to average just $960 per ounce in 2015, $15 below its previous estimate. In 2017, BNP sees gold averaging $860.
As quoted in the market news:

In the first two weeks of the year, turmoil in the Chinese economy, coupled with volatile equity markets and weaker oil, pushed gold prices back above $1,100 an ounce as investors sought refuge.
However, the analysts pointed out that gold’s safe-haven appeal, which has supported prices so far this year, will not be enough for a sustainable rally.
“Bouts of safe-haven demand that lent support to gold at the end of 2015 spilled over into early 2016…But safe-haven support is likely to prove transient,” they said.
“Gold’s secular downward trend is still entrenched, reinforced by deflationary pressures. Reasons to expect strong spot return are hard to come by, keeping investor demand at bay,” they added.

Click here to read the full Kitco report.