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Gold’s Top Forecaster Sees Prices Sinking Amid Three Fed Hikes

  • OCBC sees bullion dropping to $1,100 in fourth quarter of ‘17
  • ‘Firmer greenback should underpin bearish case,’ Gan writes
Photographer: Kiyoshi Ota/Bloomberg
Updated on

The Federal Reserve will probably raise rates in December and twice more in 2017, boosting the dollar and hurting gold, according to Singapore-based Oversea-Chinese Banking Corp., the most accurate bullion forecaster in the third quarter.

Gold will retreat each quarter next year, dropping to $1,100 an ounce in the final three months of 2017, Barnabas Gan, an economist at the lender, wrote in a commodities report. The metal for immediate delivery traded at $1,266.74 an ounce on Wednesday, about 15 percent above the target for the end of next year.