Gold

Gold: Bullion will drop each quarter to US$950 ($1,335.72) an ounce by the end of 2016, according to OCBC.

The bearish outlook reflects an improving U.S. economy and an increase in borrowing costs to 1.5% by the end of next year after an initial rise of 25 basis points at the Federal Open Market Committee meeting on Dec. 15-16

With the improving growth sentiment and higher interest rates in the U.S., the love for yield and the love for risk-taking would dominate. Gold being a safe haven, there’s little reason to put money into assets that yield nothing.

OCBC’s prediction puts gold at the end of 2016 about 12% below prices now of US$1,075.