Gold prices to come close to $1,400 in 12 months time
On October 20th, gold prices have risen again, and this time to $1,272 an ounce. BullionVault, the world's largest online investment gold service, reported that this increment in gold prices will remain steady with barely a significant change.
In a year...
The London Bullion Market Association (LBMA) predicted in its annual conference in Singapore that the average gold price in 12-months time will be $1,347 per ounce, a 7% rise from today's prices.
If comparing last year's forecast with today's actual gold prices, it is noticeable that the average estimation is substantially surpassed: during the LBMA's conference in Vienna, it was estimated that gold prices for 2016 would be around $1,159 per ounce. However, prices reached $1,366 in July.
What does this mean? This means that the expectations for the average gold price in 2017 – $1,347 per ounce – could be even more positive, as this average value is expected to be surpassed any time during the year.
Factors triggering positive forecasts
The first factor has been already noticed since late September, but it seems to be further intensifying. Jewelry traders observe more demand for gold bars, which keeps on increasing due to the fact that investors seek alternative investment options and opt for gold.
The second factor takes us to China, where Roland Wang, managing director for China at the World Gold Council (WGC), declared the following for Reuters: “We believe we (China) may keep a certain level of about 900-1,000 tonnes of annual consumption (in 2017)”. According to this statement, China's gold imports will necessarily push the demand of this precious metal, helping prices to keep on rising.
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