Gold Price Forecasts: Ross Norman

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.

Ross Norman

Sharps Pixley, London

Gold: Range: $1,148 – $1,390

Average: $1,310

It is harder than ever to make a sensible gold forecast and with good reason. Markets are increasingly driven by political events (often impossible to predict) and correspondingly less by economic and market fundamental ones. Prima facie gold is a disaster with the key demand sectors including India, China and Central Bank softer compared to recent years, yet we remain bullish. For us, a plethora of epic ‘black swans’ could so easily put financial markets into a tailspin – be it the eurozone elections, Middle Eastern geopolitical tension, debt ceilings, a trade war between the US and China, but most of all, significant inflation. 2017 should see gold prices challenging the downtrend in place since 2011 (currently at $1,319), a breach of which could see further chart resistance at $1,390. For longer-term investors, the rationale for owning gold is more compelling than ever – and that is the vulnerable macroeconomic environment. Gold has become opaque and unpredictable – as has the world – and that in itself is a good reason to own it. We think physical buyers will lift gold prices by 15%.

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