Last week, several large banks revised their forecasts for gold. Societe Generale showed the most bearish tone. The analysts at the French bank predict a fall to $925 per ounce in the period of 2016 to 2019. A cut of the long-term forecast and a rise in the expected average price to $1,130 per ounce took place at the same time. The increase was caused by the fact that gold prices remained at rather high levels in the first quarter. In January to February, the quotes grew because of a possible exit of Greece from the eurozone, but the current reasons behind it are weakening of the greenback and developing hostilities in Yemen. HSBC takes a cautious optimistic position on gold. Experts suppose that the spread of deflation pressure in the developed countries may boost the prices, and that the average price of the metal will amount to $1.234.
Since 2008, global gold production has increased with every year. The demand for this commodity is still quite high too. Central banks of many countries, including ones of China and other Asian states, purchase the precious metal actively. Besides, physical demand for jewelry and gold bars remains high in Asia. What is more, according to the forecasts, the demand is going to increase in the coming years. However, unlike Asia, the situation in the Western countries doesn't favor purchase of metal. The coming date of the interest rates hike in the United States will turn investors' interest more to the US dollar.