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LBMA Panel: Gold To Trade Flat, Palladium To Outperform In 2015

By Daniela Cambone of Kitco News
Friday January 30, 2014 10:38 AM

(Kitco News) - The London Bullion Market Association (LBMA) rounded up a panel of experts to forecast precious metal prices in 2015 -and while prospects may be neutral for gold they are bullish for silver, platinum and palladium.

Image courtesy of the LBMA

The panel, made up of analysts from various banks and research firms worldwide, is predicting that the gold price will remain broadly flat for the year, with an average forecast of $1,211 an ounce. Ross Norman of Sharps Pixley is the most bullish analyst with a gold forecast of $1,321 and Adam Myers of Crédit Agricole, London was the most bearish with $950.

However, the market experts are forecasting silver to have an average price of $16.76/oz., platinum $1,294/oz. and palladium at $838.40 for the year. This marks a 2.1% increase for silver from last year’s price projections, a 5.6% increase for platinum and a 5.3% hike for palladium.

The reasons cited by the experts for the restrained gold price were the possible strengthening in the U.S. dollar, interest rate hikes by the Federal Reserve in the second half of 2015, quantitative easing in Europe and a weak oil price reducing gold’s attraction as a hedge against inflation.

However, the analysts noted, “[T]he price could be supported by strong retail demand from China and India but only limited support is expected from the official sector.”

The experts were slightly more optimistic about the prospects of silver in 2015, with prices forecast to trade in an average range of $13.91 to $19.36. Negative price factors that could impact silver included disinflation and a slowdown in China.

By Daniela Cambone of Kitco News; newsfeedback@kitco.com
Follow me on Twitter @DanielaCambone



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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