Gold has the worst 12-month outlook among commodities and will trade below $1,400 in a year, according to investors polled by Credit Suisse in London on May 15. Goldman Sachs Group Inc. said April 23 bullion may slide to $1,390 in 12 months, and Deutsche Bank AG predicts a drop to as low as $1,050.
U.S. Mint
A surge in demand for bars, coins and jewelry following gold’s drop to a two-year low in April is temporary, Deverell said. The U.S. Mint said April 23 it ran out of its smallest gold coins and Australia’s Perth Mint said volumes jumped to a five-year high. India’s bullion imports may surge 47 percent to 225 tons in the second quarter to meet consumer buying, according to the All India Gems & Jewelery Trade Federation.
“This is bargain-buying,” Deverell said. “It’s like when you have cash for clunkers in autos, you bring forward activity, but it’s not a massive addition to buying."