Gold To Push Past $1,500 In 12 Months - LBMA Poll
(Kitco News)- Optimism ishigh among delegates at the London Bullion Market Association’s 2018 preciousmetals conference, even as general investors continue to ignore the sector.
In aconference poll, 682 attendees said that they see gold prices rising to $1,532an ounce by the next conference in 2019.
The outlookcomes as gold prices struggled to hold on to last week’s three-month high.December gold futures ended Tuesday’s session at $1,225 an ounce, down 0.20% onthe day. However, the LBMA forecast represents a 25% increase from currentprices.
“This is themost bullish forecast since 2012,” said Ruth Crowell, chief executive of theLBMA.
For silver,the delegates see the metal rising to $15 an ounce by next year. Decembersilver settled Tuesday’s session at $14.465 an ounce, up 0.13% on the day. TheLBMA forecast represents a 3% gain for the year. Platinum is expected to rise to$1,010 an ounce and palladium is likely to increase to $1,195, a 20% and 12%rise from current prices, respectively.
For the restof the year, the delegates said that they see palladium as the best performingmetal and silver as the sector laggard.
Positiveoutlook for palladium was one of the critical themes of the conference as manyanalysts noted that the metal is benefiting from a significant supply deficitas demand continues to grow.
The bullishoutlook for the precious metals comes as many conference participantsacknowledged that interest in the sector among general investors is close tonon-existent.
John Reade,chief market strategist and head of research at the World Gold Councildescribed the sentiment at the conference as positive but “low energy.”
Manyanalysts have said that while sentiment is improving within the sector, themarket needs to see consistent momentum to attract new investors. Many notedthat gold is starting to draw attention as a defensive asset as equities are seeingstrong selling pressure and higher volatility. Other participants have saidthat rising inflation pressures will eventually bring investors back to themarketplace.
By Neils ChristensenFor Kitco News
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nchristensen@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.  |