Menu Close

Our New Gold Price Forecast for 2017

This is a syndicated repost published with the permission of Money Morning - We Make Investing Profitable. To view original, click here. Opinions herein are not those of the Wall Street Examiner or Lee Adler. Reposting does not imply endorsement. The information presented is for educational or entertainment purposes and is not individual investment advice.

Our latest gold price forecast for 2017 shows the precious metal climbing double digits within the next few months, despite temporary downward pressure from several headwinds, according Money Morning Resource Specialist Peter Krauth.

One of these headwinds is the U.S. dollar. It has appreciated over 4% since Donald Trump won the presidential election on Nov. 8. As the dollar appreciates in value, dollar-denominated commodities like gold lose some appeal because they’re worth less.

Another short-term headwind is the potential ban on gold imports from the Indian government. India is one of the world’s largest gold-consuming nations, according to Krauth. A ban on gold imports could severely impact demand.

Don’t Miss: Why Now Is the Best Time to Buy Gold in Five Years

Lastly, upbeat data from U.S. durable goods orders pushed the price of gold down last week and may continue to impact prices in the next few weeks.

As the New Year approaches, however, there are many upcoming events and policies that will support a gold price rally

It’s all here in our latest gold price forecast, along with our specific gold price target…

Our Gold Price Forecast and Price Target for 2017

A bottom for gold prices could be approaching, and that points to a future rally…

The SPDR Gold Shares ETF (NYSE: GLD) has seen $2 billion of gold outflows in November, Krauth said. That was one of the worst months in the past three years, largely because of the headwinds we mentioned earlier. But this negative sentiment will likely fade over time, and Krauth believes that GLD’s performance signals the price of gold is bottoming out.

Looking ahead, there are two likely positive catalysts for gold prices.

The Essential Guide to Buying Gold & Silver

In our report, you’ll find…

  • The four best types of physical gold and silver to own
  • The five best silver and gold exchange-traded funds (ETFs) to invest in right now, two of which have surged a combined 69% this year
  • The four most reputable metals dealers to purchase gold and silver from

Get our Money Morning guide to gold and silver investing right here, free of charge.

One is the upcoming Federal Reserve interest rate hike on Dec. 13-14. While it isn’t a sealed deal, there is an over 90% chance the Fed will raise rates, according to the CME Group’s FedWatch Tool.

“If history rhymes,” Krauth said, “that could mark a turning point for the current correction. Around this same time last year, gold bottomed out at $1,050. What followed was a rally for the record books.”

Another rate hike could send stocks plummeting just like last year, when the S&P 500 fell nearly 10%. This could spark a gold rally into the New Year, Krauth said.

Another possible catalyst is the mid-March 2017 debt ceiling deadline. The deadline could be a major discussion in gold’s favor. Remember, any time uncertainty or panic strikes, gold is there to save the day with its safe-haven appeal.

Taking all of these factors into account, gold prices could see a $200 rally within a few months, according to Krauth.

“And while it still seems like a long shot from here,” he said, “I also think $1,300 is still possible within the next few months.”

Gold prices are currently trading at $1,167.60 per ounce as of Wednesday intraday.

 

To get full access to all Money Morning content, click here

About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience – for free. Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors.

Disclaimer: © 2016 Money Morning and Money Map Press. All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. 16 W. Madison St. Baltimore, MD, 21201.

 

The post Our New Gold Price Forecast for 2017 appeared first on Money Morning – We Make Investing Profitable.

Join the conversation and have a little fun at Capitalstool.com. If you are a new visitor to the Stool, please register and join in! To post your observations and charts, and snide, but good-natured, comments, click here to register. Be sure to respond to the confirmation email which is sent instantly. If not in your inbox, check your spam filter.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

RSS
Follow by Email
LinkedIn
Share

Discover more from The Wall Street Examiner

Subscribe now to keep reading and get access to the full archive.

Continue reading