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.
Bank of China, Beijing
Gold: Range: $1,150 – $1,450
We expect the gold price to be well supported through the year and should average above current levels. The key risk of the year is the considerable uncertainty about future fiscal and other economic policy initiatives. We see a high probability that Trump policies will fall short of expectations and also of less aggressive rate hikes by Fed. Uncertainties of the eurozone elections this year will increase gold’s attractiveness as a safehaven asset. Concerns about policy uncertainty will dampen investment interest in equities, while treasuries will become less attractive with lingering rate hikes, leading investors into other asset classes such as commodities and gold. As gold is playing a more important role in Chinese personal wealth management, we think Chinese demand for gold will be higher in 2017, lending continuous support to the gold price.