Gold bears are feeling their oats following the FOMC blasting away market complacency about rate hikes last week. "We continue to believe that the economic momentum in the U.S. shows further improvement,” says SocGen's Michael Haigh. “We reiterate our very bearish outlook for this year. Prices could drop below $1,000. I would not rule that out.”
Last week, Goldman reiterated its $1,065 price target for the metal.
“Gold is going to be somewhat problematic from an investment standpoint over the next six to 12 months," says buysider Ted Harper. "We’re probably looking to a relatively higher and quicker increase on rates, which is a headwind for precious metals.”
The rout over the past few sessions comes as gold ETPs were again starting to see inflows, and in the week ended March 20, the funds saw $555.3M added, according to Bloomberg.
Gold continues to fall today, -1.8% to $1,312 per ounce. GLD -1.6%