CPM Group Sees Gold Price Averaging $1,208 in 2015

Bloomberg reported that CPM Group believes the price of gold will fall for a third year in a row in 2015. The firm is basing its prediction in part on the fact that concern about global economies is waning, with safe-haven demand for the yellow metal decreasing as a result.

As quoted in the market news:

Bullion futures on the Comex in New York will probably average $1,208 an ounce in 2015, Jeffrey Christian, CPM managing director, said Monday in an interview, a day before the release of the research company’s ‘Gold Yearbook.’ That would be down 4.6 percent from 2014, according to CPM.

The metal posted a consecutive annual decline last year for the first time since 1998 as the dollar rallied on concern that the Federal Reserve will raise interest rates in an improving U.S. economy. Prices fell the most in five months in February as Greece worked to resolve its debt crisis and China and Europe took steps to shore up growth.

Jeffrey Christian, managing director at CPM, commented:

People are less fearful now, and barring any catastrophe, there are no reasons for people to rush to gold. We may see an increase in fabrication demand, but that may not be enough to push prices significantly.

Click here to read the full Bloomberg report.