Price of gold plunges, but analyst says set to recover to $1,250: Credit Suisse’s Anita Soni

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Published: July 20, 2015 10:46:48 PM

The price of gold fell to five-year lows Monday as the dollar remained strong and the Federal Reserve continued to send signals that it plans to raise interest rates soon.

The price of gold fell to five-year lows Monday as the dollar remained strong and the Federal Reserve continued to send signals that it plans to raise interest rates soon.

Credit Suisse analyst Anita Soni expects a modest recovery, however. In a note to clients last month, Soni said she expects gold prices to recover based on strong demand from Asia, reduced mining activity and increased purchases of gold by central banks. She added that the price of gold often rises in the third and fourth quarters and wrote that the same should happen in 2015. She thinks the price of gold will rise to about $1,250 an ounce.

The precious metal is now trading around its lowest prices since March 2010, at $1,104.80 an ounce near midday. That’s down $27.10, or 2.4 percent, from Friday’s close and more than 40 percent below its peak price.

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