Gold Spikes on WBG Forecast Posted by Brian Ford on June 13, 2014
The gold spot price has spiked by as much as $16 over the course of the last two days, and analysts now believe gold could hold firm at $1260-$1275, or even gain more value, thanks to a recent change of heart by the the World Bank Group (WBG), the main financial arm of the United Nations (UN). As of 5pm Texas time the gold spot price was $1264.90 per ounce.
In January, the WBG estimated the world’s economy would grow by 3.2%. This week, however, that estimate was reduced to a paltry 2.8%, and many analysts believe that figure is still exceedingly optimistic. Turmoil in the Ukraine, Iraqi militant attacks, China’s economic rebalancing and the harsh U.S. winter have all been blamed for the lackluster 2014 world economy.
The WBG believes the second half of 2014 will be more productive than the first six months of this year, but WBG economists have admitted that positive data could be hard to come by. “We’re coming to a period where growth is going to be more difficult to achieve than in the past everywhere, including in emerging markets,” said WBG economist Andrew Burns, who is also the lead author for the UN’s Global Economic Prospects report.
Downturns in the world and/or U.S. economies have acted as strong motivators for gold investors as of late, and based on the WBG’s latest report it appears that the yellow metal may have some climbing to do. For a free electronic or hard copy of the official Certified Gold Exchange 2015 Beginner’s Guide to Gold Investing call 800-300-0715 today or request your guides at the bottom of this page.