Despite recent downside pressure in gold prices, Edward Weir of INTL FCStone says he expects the metal to do well this month. “Although struggling so far in February, we think gold will do better as well in February, since we do not think that the heightened volatility in equities is over just yet,” he says. Weir notes several factors contributed to gold’s strength in January, including the unprecedented move by the Swiss National Bank as well as uncertainty stemming from Europe, and although they have seemed to calmed down, he is positive on his outlook for gold. “[We] expect to see a $1225-$1310 trading range prevailing,” he says. “Longer-term, the most recent Reuters poll has gold averaging $1234 in 2015 and $1278 in 2016, levels that might prove too low if central banks start to second-guess themselves again,” he adds. Weir says that although silver prices can benefit from gold’s strength, he expects the yellow metal to outperform silver.
