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Top Metals Forecaster Says Fed Will Still Tighten, Hurting Gold

Gold bars are arranged for a photograph in Tokyo, Japan
Photographer: Haruyoshi Yamaguchi/Bloomberg
Updated on

The top-ranked precious metals forecaster said the Federal Reserve will still raise U.S. interest rates this year and that’ll hurt gold, standing by his outlook even as bullion climbed amid a global rout in stocks and commodities.

“The Fed rate-hike story is the key reason as to why we are holding our bearish view for gold at $1,050 an ounce at the end of the year,” Barnabas Gan, an economist at Oversea-Chinese Banking Corp., said on Friday. “The Fed rate hike, if it happens either in September or December, will really be the factor that market watchers are actually looking for.”