Commodities
Gold Prices Could Plummet to $3500 an Ounce Next Year
A long conflict between Iran and the US is threatening to send gold prices plummeting next year, according to forecasts from Bank of America.
Traditionally, war has been good for gold, but this time it's doing just the opposite. The bank predicts a near $1000 fall in gold prices by next year if oil prices climb. This would take gold prices down to around $3500 an ounce, a significant drop from the peak of $4500 reached in August.
The forecasts also suggest that bond yields and the strength of the US dollar will weigh on gold prices, contributing to the decline. Currently, gold is trading at around $4175 per ounce after a volatile week, which included a 4% fall on Monday.