With new 2017 end-of-year price targets and 2018 forecasts, Reuters sees gold flat-lining, and cuts its silver forecasts. Here’s the latest…
As goldbugs and siverbugs finish working on their 2017 stacking goals, the prices for gold and silver have no doubt disappointed those looking for price gains.
If anybody is looking for better gains next year, Reuters says “not so fast”:
Next year the metal is expected to edge slightly higher, but only to an average $1,300 an ounce, just 3 percent above this year’s predicted level. Annual average gold prices fluctuated by between 8 and 26 percent between 2010 and 2016.
As per tradition, if anybody is confused on how awesome 100 – 125 basis points of interest rates on the Fed Funds Rate are for the economy, such massive rate hikes grat for the economy and somehow negative for gold:
“markets are being overly sanguine over the prospects for Federal Reserve tightening and we expect that the Fed will continue to hike rates, which is negative for gold.”
Silver is equally “meh” according to Reuters:
Banks have again scaled back their silver price forecasts for this year and next after the metal underperformed expectations in the third quarter.
Silver, which has a dual role as both an investment vehicle like gold, and an industrial metal widely used in electronics, has lagged gains in both gold and copper this year as investors sought better returns elsewhere.
The metal, which has averaged $17.14 an ounce in the year to date, is currently at $16.90 an ounce.
In 2018 poll respondents expect silver to average $17.90 an ounce, down from an expectation for $18.30 an ounce in July.
Here’s Reuters on the GSR:
Silver averaged just $16.68 an ounce in the third quarter, below expectations for $17 an ounce in the July poll. An ounce of gold currently buys 75 ounces of silver, compared to just 71 ounces at the start of the year.
“While the ratio did improve marginally, we expect no major reversal in the current trend,” Harish Gallipelli, head of commodity and currency at Inditrade Capital, said.