Gold Price Forecasts: James Steel

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.

James Steel

HSBC, New York

Gold: Range: $1,120 – $1,390

Average: $1,282

Physical demand and geopolitical risk may be the main supporting planks of the gold market in 2017. Gold is sensitive to geopolitical risks, as these raise demand for hard assets. A new US President, and elections in France and Germany may spur gold demand. Protectionist and populist policies may signal a lack of confidence in government policies and also boost bullion. Anti-trade policies in leading economies, notably the US, and the possibility of currency frictions may buoy gold. Also as President Trump openly questions decades old military and political alliances, and anti-EU sentiment in key member states appears ongoing, geopolitical tensions may rise. In this climate, investors may move increasingly into gold. Gold gains may be tempered by the strong US dollar and rising US interest rates, although we believe a degree of Fed tightening is factored into prices. Limited mine supply and recycling will also support prices, as will central bank purchases.

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