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.
Société Générale CIB, London
Gold: Range: $1,050 – $1,300
Gold has clearly become much less attractive in this environment of rising yields, a stronger dollar and expectations of higher growth, increased spending and rising inflation. Much now depends on how the latest political developments affect economic growth, inflation/ deflation expectations and, in turn, Fed policy and real rates. While perceived higher uncertainty strengthens the case for holding gold as a diversifier and hedge, possible changes in fiscal policy could push real rates higher, offsetting safe-haven demand and creating downside risks for gold. All-in-all, gold prices are at the mercy of risk appetite. Buying on dips is likely to provide support given a view that gold is a good portfolio diversifier/hedge/ insurance policy.