Baku, Azerbaijan, Oct.22
By Azad Hasanli - Trend:
The World Bank (WB) expects that the gold prices will decline by 2025 and stand at $1,000 per ounce, said a bank report.
The gold prices will drop to $1,175 per ounce as of 2015 and $1,156 in 2016, according to the WB forecasts.
This is while the gold prices were supposed to reach $1,240 per ounce in 2015 and $1,225 in 2016, according to the July report of the bank.
Precious metals prices fell 7 percent in the third quarter on weakening investment demand, while the prices are projected to fall 8 percent as of 2015, said the report.
WB said that platinum led the declines falling by 13 percent, mainly on oversupply from rising production in South Africa, while silver and gold prices fell 9 and 6 percent, respectively.
"Following a strong start to the year, gold prices have declined despite concerns over the Chinese economy and debt/political issues in Greece," said the WB.
"While the decision by the US Federal Reserve on Sept.17 to defer a rate hike provided some respite, it was quickly followed by the Federal Reserve's statement that the central bank is on track to raise interest rates this year," said the report.
The World Bank said that rising interest rates typically have negative implications for gold prices, as investors seek yield-bearing assets.
Platinum will register the steepest decline -22 percent, according to the WB forecasts.
For platinum over the longer term, how consumers and governments respond to the Volkswagen scandal, pose added risks, according to the WB.
Silver prices are expected to fall 17 percent, as the metal is generally thought to be more vulnerable than gold to shifting investment sentiment, said the report.
Edited by SI