Gold industry sees bullion rising 10% in year despite rates

Bloomberg News | October 18, 2022 | 6:13 pm Intelligence Markets Europe Gold Silver

Gold price falls over 1% as uptick in risk sentiment drives haven selloff

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Gold will rebound strongly next year, despite higher interest rates, according to a survey of the bullion industry.

Delegates gathered in Lisbon for the London Bullion Market Association’s annual conference expect prices to rise to $1,830.50 an ounce by this time next year, about 10% above current levels. The survey included the world’s top traders, refiners and miners.

Gold has fallen about 20% since coming close to a record in March following Russia’s invasion of Ukraine. Tighter monetary policy — particularly by the Federal Reserve — has weighed on the precious metal which bears no interest.

Still, some investors are holding onto bullion as a hedge against broader geopolitical and economic risks, from the war in Ukraine to Covid-19 lockdowns in China.

Silver prices were predicted to boom 50% over the same period. That was based on the average forecast of the LBMA delegates surveyed.

(By Eddie Spence)