(Kitco News) – Though gold is off its almost seven-year highs reached within the first week of the 12 months, buyers can nonetheless stay up for greater costs, in line with one treasured metals refining agency.
Of their outlook forecast for 2020, analysts at MKS PAMP Group mentioned that they continue to be bullish on gold, silver and palladium for the brand new 12 months. Nevertheless, gold will stay the “go-to” metallic for buyers in search of a safe-haven hedge as volatility and uncertainty are anticipated to dominate investor sentiment.
Within the report revealed Wednesday, the analysts see gold costs pushing to a excessive of $1,780 an oz. with costs averaging $1,636 this 12 months. In the meantime, the dear metallic is predicted to carry assist at a low of $1,520 an ounce.
“The important thing elements transferring gold this 12 months shall be geopolitics and politics. The continued tensions in Center East must be adopted intently and shall stay one of many key drivers for Gold,” the analysts mentioned. “The US presidential elections may set off extra volatility to treasured metals and to the USD which may marginally weaken.”
The outlook comes as gold costs discover assist round $1,550 an ounce.
The dear metals refiner additionally expects gold to be supported as central banks keep accommodative financial coverage in a low world progress setting.
The analysts additionally mentioned that they anticipate central banks will proceed to be web consumers of gold.
“On this advanced setting, Gold shall stay an asset of selection towards market dangers,” the analysts mentioned.
The agency can also be bullish on silver, even when it continues to commerce in gold ’s shadow by 2020. MKS mentioned that they see silver costs pushing to a excessive of $21 an oz. and common the 12 months at $18.62.
“Whereas fundamentals appear to be barely brighter, they’re nonetheless not shining. Silver will try to additional get well, but shall stay very risky and susceptible to corrections on the again of speculative revenue taking because it strikes greater,” the analysts mentioned.
Amongst Platinum Group Metals, the analysts are extraordinarily bullish on palladium and so they see little draw back as demand is predicted to stay robust as provide continues to drop.
The refiner sees palladium costs rising to $2,400 an oz. and common the 12 months at $2,288 an oz..
“All key elements that propelled Palladium to new highs in 2019 stay in place in 2020,” the analysts mentioned. “We anticipate palladium to stay within the highlight once more this 12 months!”
The analysts added that any correction on palladium may show to be short-lived and met with aggressive shopping for.
Lastly, the analyst are a bit of bit extra cautious on platinum because the market continues to cope with a glut of provide. For 2020, the analysts see platinum costs rising to $1,080 an oz. and common the 12 months at $981 an ounce.
“The diesel automotive sector market continues to be underneath stress and world progress is predicted to decelerate over the quick medium time period, just a few key elements that may stop platinum from rallying considerably,” the analysts mentioned. “Platinum may transfer barely greater over the course of the 12 months but, remaining susceptible, ought to we expertise a short-lived correction in palladium.”
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