The London Bullion Market Association (LBMA) asked 23 Gold analysts from around the world for their predictions on the average, high and low price range for the year ahead for Gold. Analysts who contributed to the Survey were invited to identify the top five drivers likely to influence the gold price in 2017. The top two drivers were the US dollar and US real interest rates, followed by demand in China and India, globaal political events and President Trump’s fiscal and International policies. Gold Stock News presents what the Analysts forecast for Gold in 2017.
Sieberana Research (Pty) Ltd, Johannesburg
Gold: Range: $1,150 – $1,380
Our gold price forecasts remain on the uppish side mainly because of the high uncertainty level in the world in 2017: an unpredictable President Trump (he may use the Fed as a political scapegoat, Trump versus Silicon Valley, Trump versus the US), China overreacting against the US, Taiwan, Hong Kong over the South China Seas, the question of European unity, French nationalism, and elections in Holland, Germany and Italy, worsening relations with Russia and Turkey, the Middle East (low oil prices stressing OPEC economies), and North Korean ICBMs (Aegis missiles a deterrent). Russia was a big buyer of gold in 2016 and may continue to buy at current ‘low’ gold prices. This will be offset by sales of gold jewellery in the Middle East and in China as their economies deteriorate due to low exports. Technically, the gold price is forming a long-term base and a double bottom at around $1,100/oz, boding well for higher prices in 2017.