Bank of America updates average price forecast for precious metals
July 11, 2023 11:22 am
Bank of America has lowered its price forecasts for gold and silver in its updated projections for the end of 2023. The regulator believes that prices for these metals will remain fairly stable until the end of the year.
Compared to the previous forecast for the average gold price for the year, which was $2,009 per ounce, the updated forecast is lowered by more than 4%, at $1,925 per ounce.
They explained that the hawkish stance of the Federal Reserve System regarding its monetary policy undermines the momentum of the gold market. According to analysts at the bank, considering the possibility of two more interest rate hikes, the yellow metal is expected to be limited to its current prices. However, prices will be supported as long as central banks continue to increase their gold reserves.
Bank of America has taken an even more bearish position on silver. Despite the demand for silver in industries transitioning to green energy, the bank lowered its average price estimate to $23 per ounce, which is 6.4% lower than the previous estimate of $24.55.
The bank’s analysts said that as long as the global economy does not reach its bottom by 2024, this price range for silver is unlikely to change. But once buyers return to the market, silver is expected to outperform gold.
Meanwhile, the regulator has a more negative outlook for platinum, lowering its price by 10% and projecting average annual prices of $1,068 per ounce, compared to the previous target of $1,168.
Regarding other metals, the projected average price for palladium in 2023 is expected to be $1,391 per ounce, more than 8% lower than the previous forecast of $1,520 per ounce.
They also added that not only precious metals will face difficulties in the second half of 2023. Analysts have also lowered their forecasts for commodities, with copper having the greatest potential for decline.
The material has been provided by InstaForex Company – www.instaforex.com
Bank of America has lowered its price forecasts for gold and silver in its updated projections for the end of 2023. The regulator believes that prices for these metals will remain fairly stable until the end of the year.
Compared to the previous forecast for the average gold price for the year, which was $2,009 per ounce, the updated forecast is lowered by more than 4%, at $1,925 per ounce.
They explained that the hawkish stance of the Federal Reserve System regarding its monetary policy undermines the momentum of the gold market. According to analysts at the bank, considering the possibility of two more interest rate hikes, the yellow metal is expected to be limited to its current prices. However, prices will be supported as long as central banks continue to increase their gold reserves.
Bank of America has taken an even more bearish position on silver. Despite the demand for silver in industries transitioning to green energy, the bank lowered its average price estimate to $23 per ounce, which is 6.4% lower than the previous estimate of $24.55.
The bank’s analysts said that as long as the global economy does not reach its bottom by 2024, this price range for silver is unlikely to change. But once buyers return to the market, silver is expected to outperform gold.
Meanwhile, the regulator has a more negative outlook for platinum, lowering its price by 10% and projecting average annual prices of $1,068 per ounce, compared to the previous target of $1,168.
Regarding other metals, the projected average price for palladium in 2023 is expected to be $1,391 per ounce, more than 8% lower than the previous forecast of $1,520 per ounce.
They also added that not only precious metals will face difficulties in the second half of 2023. Analysts have also lowered their forecasts for commodities, with copper having the greatest potential for decline.
The material has been provided by InstaForex Company – www.instaforex.com
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