CIBC has raised its gold price forecasts to $2,300 per oz. in 2021, $2,200 per oz. in 2022, $2,100 per oz. in 2023 and $2,000 per oz. in 2024.
This year the bank assumes that gold will average $1,925 per oz. in the third quarter and $2,000 per oz. in the fourth quarter for a full year average price of $1,800 per oz.
Silver prices are estimated to run to $32 per oz. in 2021, $31 per oz. in 2022, $30 per oz. in 2023, and $28 per oz. in 2024. For the remainder of this year, CIBC forecasts an average of $25 per oz. in the third quarter and $28 per oz. in the fourth quarter, for a full-year average price of $21.50 per ounce.
“The outlook for continued low real interest rates, increasing government debt burdens coupled with geopolitical uncertainty arising from the upcoming U.S. election are all supportive of further significant price appreciation,” the bank’s analysts wrote in a research note to clients.
Its long-term price forecast for gold is now $1,650 per oz. and $20 per oz. for silver.
Silver, it says, “has potential to provide investors with even more torque given the relatively smaller market for silver vs. gold.”
“Global macro uncertainty and investor demand for currency diversification will likely continue to be key drivers for demand for these two metals over the coming years.”
(This article first appeared in The Northern Miner on September 16)