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LBMA Precious Metals Forecast Survey 2024

The London-based LBMA has published its 2024 Annual Precious Metals Forecast Survey. 30 analysts from across the globe give their individual forecasts and commentary, revealing their insights behind their forecasts for highs, lows, and average prices for gold, silver, platinum and palladium for 2024.

Key Takeaways:

Gold Outlook: moderately bullish, all analysts see gold printing new highs.

Silver Outlook: aligned with gold's expectations, but with a forecast trading range of over double the actual range during 2023.

Platinum Outlook: modest gains forecast compared to 2023 actual prices; price volatility expected.

Palladium Outlook: bearish sentiment prevails with lower prices predicted than 2023.

Analysts were also asked to identify their top three drivers for the price of gold in 2024.

The top three drivers – by quite some way – were identified as:

1. US monetary policy (25%)

2. Central bank activity (22%)

3. Geopolitical risks (22%)

Trust in the US dollar as well as its outright strength, or otherwise, is factored into these three main drivers. Other factors cited by the analysts included, in order of frequency, global interest rate trends, investor behaviour shifts, election de-stability, recession risks, ETF net redemptions, sensitivity of physical demand, US unemployment, and risks associated with small-medium banks and industries in the US and China.

Gold Forecast

This year’s Forecast Survey reveals that sentiment for gold is moderately positive. The average 2024 forecast is $2,059 – a 6.1 increase on the average price* for 2023, a year in which gold prices reached a record high of $2,078.40 per troy ounce on December 28, 2023 (PM auction).

Comparing analysts’ forecasts against actual prices in the first 11 days of January 2024 which averaged $2,040.18, we can infer that analysts aren’t expecting runaway prices for gold this year. Yet all expect gold to print new highs – in the price ranges submitted, gold’s forecasted highs extend from $2,100-$2,405.

Gold is forecast to trade between $1,781 (the lowest low) and $2,405 (the highest high) – a range of around $624 – during 2024.

The most bullish of the bulls is Chantelle Schieven of Capitalight Research with her trading range of $1,935 - $2,405 for an average forecast of $2,170, who will be pinning her hopes on a lower US dollar and continued central bank gold demand bearing out. Representing the most bearish of the analysts is James Steel of HSBC with his average forecast of $1,947, a low of $1,825 and high of $2,200.

Silver Forecast

Silver’s outlook is moderately optimistic, with an average 2024 forecast of $24.80 – a 6.2% above the average price of $23.35 in 2023 and 7.1% higher than the actual average price for early January of $23.14.

The 2024 average forecast of $24.80 suggests another reserved year of silver price gains. However, within this relatively sedate forecast analysts are expecting some price volatility with their predicted trading range of $14 – between $18.00 and $32.00 – compared to the actual trading range of almost $6 last year.

Julia Du, ICBC Standard, is this year’s most bullish forecaster with her $27.00 average price forecast, a low of $20 and high of $30 while this year’s bear, Debajit Saha, Refinitiv, has an average forecast of $22.50 with a low of $20.50 and high of $26.76.

Platinum Forecast

Platinum's price expectations are quite aligned with gold and silver’s average trajectory. Platinum is forecast to average $1,015, a definitive uptick compared to the actual average for early January of $952.88.

The 2023 average platinum price was $964.98, and analysts anticipate a 5.2% increase this year. While the price expectations are relatively modest, the spread between the lowest low and the highest high is $529, suggesting some volatility ahead.

Most optimistic about platinum’s good fortunes is James Steel, HSBC, with his average forecast of $1,105 with a low of $875 and a high of $1,329, while Alexander Zumpfe’s, Heraeus Metals, average forecast of $950 – some $15 lower than 2023’s average price – is at the more reserved end of the scale. His forecasted trading range for 2024 is a low of $800 and a high of $1,100.

Palladium Forecast

The average forecast from analysts for palladium in 2024 is $1,060.10, a bearish outlook when one considers the actual average price for 2023 was $1,337.39. On the positive side, analysts are forecasting a wide spread of price activity, with the lowest low forecast of $550 and the highest high forecast to be $1,650 – a range of $1,100. So it’s anyone’s to win amidst this level of price volatility.

Analysts appear particularly negative compared to their average forecasts of $1,809.81 in 2023. Ross Norman, Metals Daily, submitted the most bearish average forecast of $724.00 for palladium in 2024, with a low of $550 and a high of $1,095. Peter Fertig, QCR Quantitative Commodity Research Ltd., sits in the most bullish position with his average price forecast of $1,250 with a low of $900 and a high of $1,650.

Editor’s Note: Established in 1987, The London Bullion Market Association (now known simply as LBMA) is the international trade association, representing the global market for gold and silver bullion which has a global client base. This includes the majority of the gold-holding central banks, private sector investors, mining companies, producers, refiners and fabricators. To view the 2024 Precious Metals Forecast Survey Click Here.

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