Gold seen at highest annual price for five years in 2018 - GFMS

In its latest Gold Survey 2018, the GFMS metals research team -a unit of Thomson Reuters, noted that the yellow metal will deliver its strongest annual price performance in five years this year. 

Key Points:

 Gold would average $1,360 an ounce this year, up 8 percent from 2017, with some short-term moves towards $1,500.

Gold has not risen above that level since early 2013.

“Uncertainty revolving around President (Donald) Trump’s politics, along with ongoing tensions in the Middle East and Brexit negotiations will remain gold’s key drivers.”

The team expected demand by exchange-traded funds (ETFs) to rebound this year to 350 tonnes.

“Retail investment is forecast to rise in 2018 following four consecutive years of declines, thanks to a pick-up in bar demand, supported by improving sentiment towards gold and rising price expectations.” 

“The continual increase in the gold price has kept bargain hunters on the sideline, as coin investors are usually the most price sensitive in the market.”

“The improving sentiment over the economic outlook, particularly in the United States, have investors less interested in gold coins as their risk appetite increased.”