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Gold prices expected to fall by the end of year - OPINION

Gold prices in a year will fall to 1,000 USD per ounce

Baku. 22 October. REPORT.AZ/ Goldman Sachs said that the increase of the key rate by Federal Reserve System (FRS) in December 2015 will have a negative effect on the value of gold.

Report informs referring to Goldman Sachs, after the increase of the key rate by FRS from December it is expected to increase again by another 1% during 2016.This will reduce the price of gold as a financial asset, not bringing any additional dividend.

Bank analyst Jeffrey Currie wrote in a report that "the intention of the Federal Reserve to raise interest rates is clear.

According to the FRS, the fluctuations in the labor market decreased, the impact on inflation intensified.

Current interest rates are much lower than long-term average interest rates.For this reason, the FRS should soon start raising interest rates."

Goldman Sachs forecasts on raising of interest rates by FRS by 0.25% made 60 %.According to the results of the traditional survey by Bloomberg, 32% economic analysts believe an increase in interest rates in December.

Goldman Sachs report states that the price of gold falls within 3 months to the level of 1100, in 6 months - 1050, a year - 1,000 USD per ounce.On October 22 gold sold for 1165 USD per ounceon world markets.

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