Natixis: Gold to Average $990 per Ounce in 2016

The Bullion Desk reported that Natixis SA (EPA:KN) sees the gold price averaging just $990 per ounce in 2016 and $1,020 in 2017. The firm believes the metal’s price will continue to be influenced by the US Federal Reserve’s interest rate decisions next year.
As quoted in the market news:

A strengthening dollar and higher yields could continue to contribute to the lowering of gold prices, “especially considering the fact that rising interest rates increase the opportunity cost of holding gold.”
Loose monetary policies in Europe and Japan will help weaken these currencies versus the dollar, which will further strengthen the greenback, it added.
Natixis expects demand from central banks and China to remain weak, compared to previous years. As well, supply from physically-backed ETPs is expected to continue at a slow pace.
But Indian demand for gold is expected to rise next year as the economy continues along its growth path.

Click here to read the full report from The Bullion Desk.