Saturday, February 3, 2018

Gold prices will be higher in 2018 according to survey of analysts but the ride will be bumpy and chaotic

In a new survey released by the London Bullion Market Association (LBMA) on Feb. 2, 34 sector analysts on average believe that the price of gold will be higher in 2018, however the path to these highs will be both bumpy and chaotic.

Since the beginning of the year we have already seen gold move violently up and down many times as it tries to breach highs established back in 2016.  And breaking through the $1380 mark, as well as $1400, will require a strong catalyst which might just now be emerging in rapidly rising inflation.

The survey by the London Bullion Market Association of analysts' predictions for the gold price this year suggest a wild ride for bullion after a fairly uneventful 2017. 
The LBMA, a standards setting body for the industry, says the 34 analysts polled are divided on the paths that precious metal prices will take in 2018: 
"Opinions differ as to the level of US real interest rates, the likely impact of geopolitical factors and the pace of global economic growth. Our contributors are divided as to what will have the greater impact and hence we have received forecasts for gold as high as $1,510 and as low as $1,120 and it’s a similar story for the other metals." 
While gold is predicted to trade in a wide band in 2018 year the average of $1,318 a troy ounce is not far off Friday's levels. Gold was under pressure in New York on Friday with metal for delivery in April exchanging hands for $1,332, down $16 on the day as bond yields in the US spike to four year highs. 
Rhona O'Connel of Thomson Reuters GFMS is the only analyst to see a spike above the $1,500 mark but for an average over the course of the year Adam Williams of Metal Bulletin and Frederic Panizutti of MKS, a refiner, are the most bullish with predictions of a $1,365 average. – Mining


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