By Yusuf Khan
Gold and silver prices are expected to rise in 2023, with a weaker U.S. dollar and easing monetary policy likely to push the precious metals higher, according to analysts.
In its annual survey of 30 analysts, the London Bullion Market Association said Wednesday that there is cautious optimism about prices, with expectations that gold and silver would on average be 3.3% and 8.8% higher, respectively, by the end of the year compared with 2022.
Of the factors which could drive prices higher, 43% surveyed said the U.S. dollar and Federal Reserve monetary policy would be key, while 14% said inflation and 11% said geopolitical factors.
On gold specifically, the analysts forecast an average price of $1,859.90 a troy ounce, though the range remained wide - between $1,594 and $2,025 an ounce. This range was similar to last year's forecast, the LBMA said. The average price for gold in 2022 was $1,800.09 an ounce while prices on Wednesday sat at $1,939 an ounce.
On silver, analysts expected prices to $23.65 an ounce this year - up from $21.73 an ounce in 2022. The lowest estimate was $17.50 an ounce while the highest was $27 an ounce. Prices on Wednesday sat at $23.59 an ounce.
Despite gold and silver's strength, the analysts surveyed were less optimistic about palladium, expecting a drop of 14.3% to $1,809.80 an ounce in 2023 from the actual average price in 2022 of $2,112.06 an ounce. Prices on Wednesday sat at $1,672 an ounce.
Platinum though is expected to rise by 12.5% this year compared with the actual average price in 2022 to $1,080.4 an ounce. The range of forecasts sat between $988 and $1,241 an ounce. Prices on Wednesday sat at $1,011.20 an ounce.
Write to Yusuf Khan at yusf.khan@wsj.com
(END) Dow Jones Newswires
02-01-23 1108ET
