BMO Capital Markets Reduces Gold, Silver, Platinum Forecasts

Mineweb reported that BMO Capital Markets has reduced its price forecasts for gold, silver and platinum. However, the firm has raised its palladium price outlook.

BMO’s price expectations can be summarized as follows:

BMO has lowered 2015-16E gold prices from $1,275 to $1,190 in 2015 and from $1,250 to $1,238 in 2016 to reflect recent price performance, adding ‘BMO Research does not expect any upset for gold from current levels until H2/16E based on U.S. dollar forecasts.’

Silver price forecasts have been revised down by BMO Research ‘in light of recent price performance and ‘in sympathy’ with gold prices. BMO Research expects silver prices to average US$17.50/oz in 2015E … moving up to US$19.50/oz in 2016E in a weaker environment.’ Previously, BMO forecast a 2015E silver price of $20.25.

BMO platinum price forecasts for 2015E have been revised from $1,500 to $1,143 per ounce, while 2016E price has been revised from $1,550 to $1,425 per ounce.

BMO Research has increased palladium price forecasts to reflect an expected deficit market over years, with the long-term price increased from US$850/oz to $950/oz.

Click here to read the full Mineweb report.