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.
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.
