To move the price of gold? After a sharp drop in the fall 2012 - spring 2013 the gold price is moving sideways in a range of US $ 1,200-US $ 1,400 per ounce a year already. Gold is currently trading right in the middle of this range, around $ 1,300 per ounce. We do not intend to make predictions for gold, but would like to consider the movement of prices, which is often a barometer of global economic and political situation. For example, the increase in the price of gold to nearly $ 1,380 in mid-March this year, particularly nmp3 due to the Russian invasion of the Crimea. Since then all movements for gold, at least in part, linked with market experts ups and downs of tension in Ukraine. However, as we noted in a recent blog that the longer the Ukrainian situation, it becomes weaker market reaction to it. This fading reaction is a reflection of the relative indifference to the Ukrainian situation in the West, and while some improvement in the prospects for reconciliation in Ukraine. However, the market does not exclude also the prospect nmp3 of an escalation of the situation, supporting the price of gold. Another important factor that affects nmp3 the price of gold is predictions about movement direction of monetary policy nmp3 in the United States, in particular the rate of suspension of redemption of assets by the Federal Reserve. Each optimistic economic news from the United States reinforces expectations of rapid termination nmp3 policy nmp3 of quantitative easing and consequently lowers the price of gold, and vice versa. Physical demand for gold from China and India, which is also a significant factor remains strong. In particular, the recent growth of gold to $ 1,300 an ounce can be attributed to the expectation that the Indian government will ease restrictions on imports nmp3 of gold (Bloomberg). Forecasts for gold for this year seems to lean towards the lower limit of the current price range. Among lower forecasts - forecast Goldman Sachs, $ 1,050 over 12 months, based on the expectation of improvement in the economy the United States. The leading independent nmp3 consulting firm in the field of precious metals GFMS Ltd expects the average price this year at $ 1,225. Investment bank UBS AG recently raised its forecast for 2014 to $ 1,300 on expectations of higher demand for gold as a safe asset and a strong demand from Asian buyers. The median forecast of nine analysts engaged in the gold market and tracked nmp3 Bloomberg, at the end of 2014 is $ 1,165. The two most accurate analysts of this group is even more pessimistic forecasts and their prediction like Goldman Sachs. Ukrainian Credit Union Limited
Financial Commentary - Crimea and world markets
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