In our base-case scenario, we look for gold prices to touch US$1,000/oz while crude oil is expected to rally to its US$75/bbl handle at the end of 2015, thus bringing the gold-oil ratio to 13.3 then.
In fact, we believe the oil slump has finally found its bottom, given that both global benchmarks of oil prices (West Texas Intermediate and Brent) have rallied past their US$50/bbl mark on news of falling US oil rig counts and capital expenditure cuts by major oil production names.
Meanwhile, gold prices are likely to fall further on dollar strength, led by a potential hike of the federal funds rate in Q2 2015.
- See more at: http://business.asiaone.com/news/go...recession-ahead/page/0/1#sthash.qotlZ3pm.dpuf
