Gold price set to fall as global growth picks up

Singapore (Dec 9)  Gold could lose some of its lustre as a safe haven asset going into the new year, with global growth set to improve, according to OCBC economist Barnabas Gan.

Mr Gan told a briefing yesterday that he expects gold prices to be at US$1,200 an ounce for what is left of the year, and even lower at US$1,100 by the end of next year.

"There is confidence in the global growth story," noted Mr Gan, citing the International Monetary Fund's 3.2 per cent growth projection for the world next year, which is higher than this year's 3.1 per cent forecast.

Spot platinum is hammered down $21 to $913, while spot silver slides 11 cents to $16.85.

Source: Business