Gold is the Rodney Dangerfield of metals
Gold cracked $2,000 an ounce on Monday for the first time in a year, as metal traders reacted to Sunday’s news that a deal was reached for UBS to buy Credit Suisse.
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)
Comments