Thomson Reuters GFMS Sees Gold at $1,170 in 2015

Thomson Reuters GFMS said in its recently released GFMS Gold Survey 2015 that under its base-case forecast it sees gold averaging $1,170 per ounce in 2015. The following year it anticipates an average gold price of $1,250 on the back of increased buying in Asian markets.

As quoted in the market news:

For the supply side of the market this scenario is likely to see the continuation of a constrained investment environment and lower mine output by 2016. Scrap supply should also be close to levelling off and hedging is likely to remain a feature, albeit not a defining one, of the market.

Turning to demand we expect jewellery consumption to continue to grow at a modest pace while retail investment in bars and coins is unlikely to return to the peaks we saw in 2013. It is not going to disappear, however, and we expect that over 1,000 tonnes of gold a year will continue to be stockpiled by bar and coin investors in the yellow metal. Finally we continue to forecast purchases from the official sector, although these will be lower given declines in energy prices since late 2014.

Click here to download the survey.