Hong Kong and Singapore Bank (HSBC) predicts gold prices will be up 10% by the end of this year. If their predictions come to pass, the price of gold would be approximately $1225. HSBC Bank bases their prediction on the belief that commentators from Goldman Sachs are wrong to believe higher interest rates will cause gold to sell off to a lower price. I agree with HSBC.
I believe the market has been anticipating higher interest rates for the past two years and the price declines have already been mostly factored into the market. I also do not believe the fed will become aggressive with interest rate increases as some have said. Doing so will significantly harm our GDP outlook, and only add to our soaring national debt.
The price of gold is down nearly 50% from its 2011 high of just short of $2000 an ounce. Silver has experienced an almost […]