There has not been much love for gold this year, with the precious metal dropping at its lowest point to under $1,080 an ounce or about 17% lower than its value at the beginning of the year.
I do believe that right now there is a case to be made that gold price's will stage a recovery in the next few months, and I see gold ending the year above $1,300.
The main reason gold was declining throughout the year was the strengthening of the US dollar, and the wide held belief that the Federal Reserve will be raising interest rates for the first time in over nine years.
In the last few weeks, it has become abundantly clear that the Fed does not feel comfortable raising rates and is likely to hold off until at least March of 2016.
The main reasons the Fed will not raise this year are:
1) Recent market turmoil in China, which has spiked global fears in emerging markets and caused massive sell offs in stocks all over the world
2) Two months in a row (August, September) where we have gotten soft employment numbers in the US; the continuing improvement in the labor market was one of the main points the Fed has detailed as a sign for lift off.
3) The 2% yearly inflation target that the Fed has set is not even close to be met, and a strong dollar is the opposite of what they need.
Based on these factors, I just don't expect the Fed (which has been setting a dovish tone all year) to want to move before its basic conditions are met, and once they don't raise in December, gold will be one of the main benefactors. 