Gold prices may hit $3,600 by 2015 - experts

Dubai would be well-placed to cater to a probable new demand for gold jewellery and bullion emerging from the Iranian market following the easing of sanctions, Khaleej Times reported.
Gold prices will remain under pressure and stay in a range as low as $1,150 per ounce to close the year at $1,279 given the mild recovery of the US economy, but could reach $3,600 per ounce by 2015 on the back of an explosive growth in US money supply, precious metal experts forecast.
Speakers at the first Global Commodity Outlook Conference recently held in Dubai also forecast that Dubai would be well-placed to cater to a probable new demand for gold jewellery and bullion emerging from the Iranian market following the easing of sanctions. Chandu Siroya, managing director of Siroya Jewellers, said in a panel discussion that regional and Dubai jewellery demand, which had been robust in 2013, would continue to be strong in 2014.
Jeff Rhodes, managing director of Jeff Rhodes Consultancy, suggested that Dubai is ideal for the establishment of a bullion bank. Given the strong flow of trade and cultural considerations, it is imperative that the region considers this opportunity, he said and projected the 2014 year-end gold price at $1279.
Rolf Schneebeli, CEO, Gold Services AG, was most bullish on gold and estimated the price surge could even surpass $3,600 per ounce on the back of unbridled money supply by 2015.
However, recent forecasts from some major banks suggest that gold will average $1,209 an ounce this year.
Ahmed bin Sulayem, DMCC chairman, said that the value of gold traded through Dubai reached $70 billion from just $6 billion in 2003 and that the emirate has become a major global gold and precious metals trading destination accounting for almost 25 per cent of the world’s physical gold imports and exports. Dubai also recorded $40 billion of diamonds trade, he said.