Alpine Capital Management - Clients Advised to Get Back into Gold: 2015

1 Austin Road West, Hong Kong, March 12, 2015 (Newswire.com) - Alpine Capital Management’s Chief Investment Officer, Charles Leung was on hand to share his views to gold investment enthusiasts as he gave his analysis on what to expect from the price of gold during 2015 and beyond.

“We have identified a number of drivers that, based on our analysis indicates that gold will continue face price volatility during 2015. The good news is that we expect the market to bottom out towards the third quarter of this year, clearing a way for investors to profit throughout 2016.” 

We have identified a number of drivers that, based on our analysis indicates that gold will continue face price volatility during 2015. The good news is that we expect the market to bottom out towards the third quarter of this year, clearing a way for investors to profit throughout 2016

Charles Leung , Chief Investment Officer

The spot price for gold, which ended 2014 with little change after the break of a staggering 12 year bull run “will average out at $1,234 an ounce, essentially 3 percent down on its 2014 close. Using conservative forecasting, our analysis shows that gold will recover during 2016 on a base average of $1,278 an ounce.” continued Charles Leung.

With such pessimism surrounding gold investments during 2014, Alpine Capital Management’s Charles Leung gave a brief insight into the economics at play that are most likely to affect the performance of gold.

“Although we fully expect to see a bottoming out on price during 2015, we see that a rise in interests rates in the U.S. will remove the opportunity cost of holding onto non-yielding bullion as the dollar receives a boost. However we must consider movements within the Euro zone that so far have supported the base price since the start of 2015, but could easily contribute to a price drop depending on the ECB’s QE policy.”  

Alpine Capital Management’s commodity analysis also predicted that the Euro zone’s QE policy, if implemented, would at this time have unknown effect on the price of gold. Further instability throughout the region or a rise of inflation may lift the base price, yet a positive response to a potential QE policy and a weaker Euro currency could in fact weigh.