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LBMA delegates see silver prices rallying 54% in the next 12 months

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(Kitco News) - Precious metals have had a challenging year as investment capital has fled the marketplace due to rising inflation that has forced central banks worldwide to aggressively tighten their monetary policies.

However, despite the challenges, there is still a lot of optimism in the marketplace, according to attendees at the world's largest precious metal investment conference.

According to surveys during the London Bullion Market Association's Global Precious Metals Conference, delegates see gold prices significantly higher by this time next year, reaching $1,830.50 an ounce, representing a nearly 12% gain from current prices.

As bullish as attendees are on gold, they said silver has the most potential. On average, the delegates see silver prices at $28.30 an ounce by October 2023, representing a rally of nearly 54% from current prices.

 For PGM, delegates see platinum prices rising to $1,238.70 an ounce in the next year, up compared to the current price of $891.90 an ounce. Meanwhile, palladium prices are expected to rise to $2,058.80 an ounce, up from Wednesday's price of $1971.50 an ounce.

Although analysts see higher precious metal prices in the next 12 months, comments made during the conference noted that it will be difficult for the market to attract any bullish interest in the near term as the Federal Reserve pushes the Fed Funds rate higher.

Gold price to find its luster again by Q2 of 2023 when interest rates peak - BMO Capital Markets

However, many analysts see interest rates peaking in the first quarter of 2023, with gold and silver prices rallying by the second quarter.

Although investment demand has been extremely disappointing this year, panelists at this year's conference noted a significant divide between the paper market and physical demand.

Analysts noted that record-high premiums for silver indicate that investors still see precious metals as important safe-haven assets as uncertainty dominates global financial markets.

"Gold is ultimately a physical market and that tells you what the trend is," Matt Slater, global head of precious metals forwards and physical trading at UBS, said in a panel discussion Monday.

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 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.