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LBMA’s 2014 Gold Price Forecast Winner Shares 2015 Predictions For Metals

By Sarah Benali of Kitco News
Friday January 16, 2015 11:02 AM

 

(Kitco News) - After winning the London Bullion Market Association’s annual award for accurately predicting the average price of gold in 2014, Switzerland-based MKS released its 2015 forecasts for precious metals prices, which they expect will garner further gains this year.

In a report released on Friday, the precious metals trading firm said they expect gold to maintain an average fix price of $1,292 an ounce in the coming year, up from Friday’s London PM price fix of $1,277.50 an ounce. According to their forecast, gold prices are expected to swing between $1,150 and $1,390 an ounce.

“A likely stock market correction in the USA and Europe in H2, increasing geopolitical tensions, subdued growth, uncertainties in the Eurozone and possible greater stimulus will prevail in 2015 especially in H2,” the report said.

“The official sector shall continue to be increasingly on the buying side.”

Although the firm expects more volatility for silver, they remain more optimistic about the industrial metal’s prospects than gold, and said the average price should hover around $17,72 an ounce. The firm is expecting to see silver prices swing between a low of $15.20 an ounce to a high of $20.20 an ounce.

“Our sentiment for silver is definitely more bullish than for gold with an expected high in H2 at 20.20 USD/oz,” they said.

“[W]e do expect silver to occasionally uncouple from gold throughout the year, facing several volatile and erratic rallies,” they added.

Given supply deficit issues and prospects of increased car sales worldwide, MKS remains bullish on the platinum group metals.

“We expect platinum to recover in 2015 and to gain some 11% in its value with a high at 1420 USD/oz and a year fixing average of 1342 USD/oz,” they said.

“We see palladium averaging 858.00 USD/oz and culminating at 940 USD/oz in 2015,” they added.

MKS was recently awarded the LBMA 2014 Precious Metals Forecast prize based on CEO Frédéric Panizzutti’s work, which forecasted an average 2014 gold price of $1,262 an ounce, close to the $1,267/oz price seen by the metal last year.

By Sarah Benali of Kitco News sbenali@kitco.com
Follow me on Twitter @SdBenali

 

 

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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