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Outlook 2017

INTL FCStone Sees Potential 2017 Gold Range Of $1,050 To $1,400

Editor's Note: Kitco News has officially launched its 2017 Outlook where we ask if this is the start of a new Raging Bull market. Be sure to catch all our coverage here, which includes gold forecasts, special technical reports and of course, our popular Invest Like The Experts Series. We will also be launching a new feature so be sure to stay tuned!

(Kitco News) - Gold could fare better in 2017 than many analysts think due to the potential for further destabilization of the euro and a pick-up in physical demand from low levels in key gold-consuming Asian nations, says INTL FCStone.

The firm Monday released its monthly commodities outlook, which also includes a forecast for the full year. INTL FCStone sees a full-year range of $1,050 to $1,400 in gold.

Gold Chart

The metal snapped a string of three straight losing years in 2016, although bulls may have been disappointed as the year wound down since gold pared its midyear gains. The metal fell back since the November U.S. presidential election as bond yields and the U.S. dollar rose.

“Looking ahead, it is tempting to say we could see further downside in gold, especially if the late 2016 headwinds reassert themselves,” INTL FCStone said. “While this is a possibility and incorporated into our price forecast, we think other variables have the potential to offset these bearish concerns and arrest a protracted downward spiral.”

For starters, critical elections will occur in France, Italy, Germany and Holland, with potential for some established parties to be forced out of office, INTL FCStone said.

“This would be a game-changer for gold, as it could destabilize the euro and provide a fertile background for a sustained advance, not too dissimilar from what we saw in 2011 during the Greek crisis,” INTL FCStone said.

Meanwhile, U.S. President-elect Donald Trump’s may not be able to push through all of his objectives, which could knock back the dollar and equities, the firm said. Further, moves toward trade protectionism could “provide another lifeline for gold.” Meanwhile, INTL FCStone wonders whether gold demand can have “as bad of a year in 2017 as it did last year” in China and India.

INTL FCStone sees silver in a 2017 range of $14.70 to $21, with an average price of $17.10. Platinum is expected to range from $825 to $1,200, with an average of $935. Palladium is forecast to range from $600 to $880, with an average price of $730.

By Allen Sykora of Kitco News; asykora@kitco.com

 

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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