Photo by: Bloomberg
Independent precious metals authority London Bullion Market Association (LBMA) has cited analysts predicting that the gold price will trade even higher in the second half of the year, following a record price of $2 480/oz on July 17.
An average of forecasts implies the gold price may reach $2 547/oz; however, the price will likely average lower by the close of the year at $2 395/oz.
Some of the more optimistic forecasts are for the gold price to reach $2 650/oz during the second half of the year, while the lowest forecast was $1 985/oz.
The LBMA conducted a review of 14 analysts’ forecasts for the price of gold during the second half of the year, which supplements the survey published early every year by the authority for the four major precious metals.
The association says many analysts had expressed surprise by the strength of gold through the first half of the year, with analysts having come short at 7.1% with their prediction.
The gold price averaged $2 205/oz in the first half of the year, while analysts predicted an average of $2 059/oz.
The main drivers for the gold price during the remainder of the year will be the US Federal Reserve interest rate movements, geopolitical risk and central bank purchases.