Gold forecast revised lower on bets of 3 Fed hikes in 2017 - BNPP

Analysts at BNPP revised down their gold price-forecast for 2017 and 2018, noting that they see further Fed rate hikes, which is likely to weigh on the non-interest bearing gold.

Key Points:

On gold -

An average price of USD1,245 for Q2 of 2017

$1220 for 2017 as a whole on average

$1120 for 2018 as a whole on average

Demand may increase on European political uncertainty though

Longer term trend remains down though 

On Fed rate hike outlook -

Expect a total of 3 Federal Reserve hikes this year

And more over the coming year, says market is too complacent on the potential 2018 hikes also