KUALA LUMPUR: The outlook for gold market in 2015 is positive with prices likely to reach US$1,500 an ounce this year, Public Gold Group founder and executive chairman Datuk Wira Louis Ng said.
He said the economic uncertainties would help push gold prices higher this year as demand shifted to the precious metal for a safe haven.
“Europe recently took up a new quantitative easing programme that will release 60 billion euro per month into the economy and it is unlimited.
“They will stop when their inflation rate drop to two per cent.
“That programme is likely to last for two or three years with more money being printed and this is good for the physical gold,” he told reporters on the sidelines of the Public Gold’s annual gold seminar here. The one-day seminar deliberated on the Goods and Services Tax (GST) and syariah principles on physical gold.
A weaker US gross domestic product numbers will also help boost the gold prices further in anticipation of more quantitative easing exercises by the US Federal Reserve, Ng said.
The US Commerce Department has reported that US’ economic growth expanded at a 2.6 per cent annual pace in the fourth quarter of 2014, down from gains of five per cent in the third quarter.
“For sure, the interest rate is not going higher because the economic indicator did not show a good sign,” he said. — Bernama