KUALA LUMPUR: Gold price is expected to see a declining trend in the next three to four months to test the US$1,180 level before recovering to between US$1,300 and US$1,350 by year-end.
Thomson Reuters GFMS Manager of Precious Metals Demand, GFMS Metals Research and Forecasts, Cameron Alexander, said currently, the price was holding up due to geopolitical tension in Iraq.
"I think it will go down to US$1,100 and may recover to US$1,300 and US$1,350 at the end of the year. I don't think it will be much higher than that.
"I think the price next year will be lower than this year's, which is expected to see a 13 per cent drop. Next year will also see a drop," he said.
Alexander was speaking to reporters on the sidelines of the Gold and Precious Metals Price Outlook Symposium, organised by Bursa Malaysia today.
Meanwhile, World Gold Council managing director, Far East, Albert Cheng, said China and India would maintain their gold consumption for the rest of 2014.
"In India, the new government will make changes in India's economy. It is very pro-business. The optimism in that the Indian market is well spread and we will see a positive outcome from India," said Cheng.
Meanwhile, World Gold Council website showed that jewellery demand was well supported in the first quarter this year, exceeding the total from the first three months of last year.
First quarter gold demand held steady at 1,074.5 tonnes, maintaining the lofty levels seen last year, it said.
It said jewellery demand made moderate gains of three per cent, largely due to lower gold prices compared with the first quarter of 2013.
Among the Western markets, the US and UK improved further, building on the tentative recovery that started last year as better economic conditions, coupled with lower average gold prices, buoyed demand.-- Bernama