According to a recent Reuters poll, gold prices are expected to extend their weakness into 2016 with further declines in sight after a weak third quarter.
The survey of 38 analysts and traders conducted over the last two weeks returned an average gold price forecast for next year of $1,153 an ounce, 8% below the forecast returned by a similar poll in July.
Analysts expect gold to average $1,165.50 an ounce, down from a forecast last quarter of $1,193 an ounce. In the year to date gold has averaged $1,177 an ounce, but it is expected to slip to $1,125 an ounce in the last quarter.
GFMS analyst Johann Wiebe noted, "The chief drivers for a continued abysmal performance in the gold price are mainly twofold - Fed rate hike expectations and disappointing global physical as well as investment demand, we expect the gold price to remain under pressure and record a new low before year-end."