CPM Group sees summer retreat for gold regardless of outcome
by Myra P. Saefong
Gold prices are likely to decline this summer then recover to $1,300 an ounce or more by year-end, no matter what the outcome of the U.K. referendum is later this week, analysts at CPM Group said in a note Monday.
Uncertainty surrounding Thursday’s referendum that will help determine if Britain remains a member of the European Union has benefited the price of gold GCQ6, -0.24% Futures prices have posted gains over the last three weeks in a row and settled at a nearly 17-month high on June 16.
But futures fell for a second session in a row on Monday, losing 0.2% to settle at $1,292.10 an ounce as fears that the U.K. will leave the EU, known as Brexit, have eased somewhat.