(MENAFN- ProactiveInvestors - UK) Gold edged higher again despite predictions it would struggle to hold onto gains that yesterday took through the US$1200.
Goldman Sachs has been set against the metal for some time and repeated its view that gold will retreat to US$1000 by the year end as the US Federal Reserve raises interest rates by 25 basis points three times this year.
This will increase real interest rates and drive gold prices down it said.
UBS too said some caution may be warranted around the key psychological level at $1200 and especially ahead of Fed Chair Janet Yellen's testimony to the House and Senate this week.
'We believe the risk the market may need to consolidate and digest the recent move has increased.'Stress across credit markets is helpful as is the recent dip in the dollar said UBS's analyst Joni Teves.
'We think gold deserves credit for its year-to-date performance and a $1200+ price tag should be achievable' she added but watch for potential signals on sentiment from the options market.
Shortly after US market opened spot gold was trading US$3 higher at US$1192. Silver rose a tad to US$15.35 while platinum gained US$4 to US$926.
Major share moves
Randgold Resources down 15p at 5985p
Fresnillo up 9p at 860p
Anglo American down 10% at 340p
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