Report: Gold could dip as low as $1,100 this year

Michelle Graff

London – A new report states that the per-ounce price of gold might have already hit its high for the year and could briefly sink as low as $1,100 in the coming months.

According to the 2014 Gold and Silver Mining Focus recently released by a London-based organization called Metals Focus, the price of gold rose 16 percent between the end of December and mid-March, reaching a six-month high of $1,392.

A number of factors drove the price increase, including weaker-than-expected economic news in the United States, which “shook some investors’ confidence in the smooth-recovery thesis,” the report states.

However, Metals Focus believes that the metal already has hit its high for the year and that the gold price will sink in the coming months.

The company said it is not ruling out a “brief drop” to as low as $1,100 per ounce. Driving the price downward are a number of factors, including the U.S. recovery gaining momentum as consumers emerge after a terrible winter and the Federal Reserve’s ongoing reduction in bond purchases, which is “easing concerns about fiscal situations on both sides of the Atlantic,” the report states.

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Source National Jeweler