Gold Silver Reports ~ The London Bullion Market Association foresees precious metal prices increasing in 2016. The LBMA Forecast Survey predicts that Gold Levels to Average $1,105 in 2016, 1.1% higher than the first half of January 2016, although still $57 below the actual average price in 2015.
*The most bullish analyst who contributed to the survey forecasts an average price of $1,225 and the most bearish contributor forecasts average of $960.
*In a US presidential election year distortions in the market are expected, as per the survey. Contributors expect the outlook for goldprices in 2016 to be dominated by the size and frequency of US Fedprice hikes and the impact on the strength of the dollar.
*Some volatility in the price is expected particularly given the political and economic uncertainty in the EU, Asia and the Middle East, with contributors forecasting that the gold price will trade in an average range of $978 to $1,231.
*Prices are expected to bottom out in the first half of the year and rally in the second half boosted by demand from investors in Europe and Asia. The prospect of devaluations in the renminbi and support from investors in China is expected to help prop up the price. ~ Neal Bhai Reports
