LBMA delegates see gold prices pushing past $1,650 an ounce next year
(Kitco News) - Optimism within the precious metals industry remains strong as delegates at this year’s London Bullion Market Association Precious Metals Conference see even higher prices by this time next year.
As this year conference in Shenzhen, China wrapped up, attendees were asked where they see prices by this time next year. According to the unofficial poll, the delegates see gold prices rising to $1,658 an ounce, up nearly 11% from current prices. December gold futures last traded at $1,493 an ounce, up 0.64% on the day.
As bullish as the participants were on the yellow metal, they are even more optimistic on silver. The attendees see nearly a three-fold rally in silver compared to gold.
The delegates see silver prices rising to $23 an ounce, representing a gain of 32%. With these forecasts, the gold/silver ratio is expected to fall to 72. December silver futures last traded at $17.405 an ounce, up 0.15% on the day.
Platinum is expected to continue to play catching up next year with the price forecasted to rise to $1,182, up 34% from current prices.
Palladium’s hot streak is not expected to end any time soon as attendees see the metal pushing to $1,924 by next years, up 10% from its already record prices.
Although delegates are bullish on precious metals across the board, the analysts during a panel discussion said that prices might need a pause after the summer’s rally.
The LBMA forecast has gained a bit more attention lately as last year’s forecast has proven to be fairly accurate.
Last year the conference poll said that attendees saw gold prices rising to $1,532 an ounce. The bullish outlook came at a time when gold prices were struggling to hold support above $1,200 an ounce.
Earlier this summer, expectations of looser monetary policy and rising recession fears helped to gold prices rally more than 20% for the year, which prices hitting a six-year high above $1,560 an ounce. According to reports this is only the second time in the last 10-years that gold has seen a 20% rally.Although prices are off their highs, the gold market is still holding on to a 16% gain for the year.