LBMA Sees Gold at $1,211, Silver at $16.76 in 2015

Mineweb’s Lawrence Williams reported that the London Bullion Market Association (LBMA) sees gold averaging $1,211 per ounce for 2015. Meanwhile, it sees silver averaging $16.76 and platinum and palladium averaging $1,294 and $838.40, respectively.

For his part, Williams is a little skeptical on the predictions put forward. He states:

Analysts cite a number of factors which are likely to restrain gold prices in 2015, including the possible further strengthening in the U.S. dollar, interest rate hikes by the Fed possibly commencing in the second half of 2015, QE programmes in Europe and a weak oil price reducing gold’s attraction as a hedge against inflation. On the other hand the price could be supported by strong retail demand from China and India but only limited support is expected from the official sector.

But few seem to see geopolitical activities as a price driver in boosting safe haven demand. This is very much an unknown as per Donald Rumsfeld’s renowned saying and most prefer to sweep such thoughts under the carpet and ignore them. The writer feels, though, that some current geopolitical factors should rather come under the known unknowns category – while unknown unknowns nowadays tend to be referred to as black swan events and who knows what is brewing in this arena in the current year.

Click here to read the full Mineweb report.