BMO Sees Average Gold Price of $1,280/Oz in 2018
Wednesday, 20 December 2017 05:00 WIB | GOLD CORNER |Gold OutlookGold Corner

Gold prices will average $1,280 an ounce in 2018, with buying interest, as an inflation hedge and due to loose monetary policy globally, offset by a strong U.S. dollar, said BMO Capital Markets in a report late Monday.

œA slow and steady interest-rate hike cycle proposed by the Federal Reserve and subdued investor demand are expected to keep prices in check and cap any significant upside potential, the bank said.

Analysts described the metal as œremarkably stable over the last two years, compared to the broader commodity complex, saying gold prices were range-bound during normalization of monetary policy and as dissipating geopolitical risks meant less safe-haven interest. This was offset by building inflationary pressures, which meant some market participants are looking to increase their allocation to gold as a hedge.

œWe see benefit coming from still-loose monetary policy and renewed inflation concerns, but potential for headwinds from dollar strength, BMO said.

Macroeconomic data point to a strong U.S. economy, with the labor market nearing full employment, BMO said. U.S. inflation is forecast to slowly move toward the long-term target of 2%, BMO continued. The market anticipates at least two more Federal Reserve rate hikes in 2018 in the wake of another 25-basis-point tightening in December.

œWith this outlook already priced in at the current price levels, we do not expect a significant deviation from the expected range-bound outlook over the near term unless the U.S. Fed drastically shifts from its current policy framework, BMO said.

Traders will be closely watching for any monetary-policy signals from incoming Fed Chair Jerome Powell, although he is expected to maintain the course set by outgoing Chair Janet Yellen, BMO said.

Meanwhile, gold should benefit from œover-allocation by investors in emerging-market nations who have a lack of other options, BMO said.

The bank™s $1,280-an-ounce outlook for gold in 2018 is a downward revision of 1.5% from its previous estimate. Analysts then look for a $1,250 gold average in 2019.

Source: Kitco News

RELATED NEWS

Gold Could Test The 'Ultimate Target For Bulls' This Week - MKS
Tuesday, 16 January 2018 05:25 WIB

Seiring harga emas terus membuat jalan ke level yang lebih tinggi minggu ini, logam kuning ini bisa menguji "target tertinggi para bulls," yang saat ini ditetapkan di level $ 1,357 “ level tinggi bulan September, kata trader di MKS PAMP Sam Laughlin. "Kami cenderung melihat tekanan singkat lebih ...

Gold Getting Ready To Make Big Move
Monday, 8 January 2018 21:49 WIB

Emas telah menjalani reli besar hampir $ 90 selama 19 hari perdagangan terakhir. Apa yang tampak seperti breakdown (penembusan ke level tertentu “pen) berubah menjadi kesempatan membeli yang hebat. Pada hari Kamis, emas tampak seperti mendapatkan gebrakan terakhir ke sisi atas pada volume yang tin...

RBC's Gero Sees Gold Hitting $1,400 By End Of 2018
Tuesday, 2 January 2018 11:39 WIB

Emas akan mendapatkan kenaikan yang stabil pada tahun 2018 seiring inflasi yang meningkat dan persaingan dari pasar ekuitas melambat, menurut George Gero, managing director di RBC Wealth Management. Dalam sebuah wawancara dengan Kitco News, Gero mengatakan bahwa dia melihat harga emas naik ke level...

Gold Prices Expected To Trend Higher In Quiet Holiday Week
Monday, 25 December 2017 19:11 WIB

Dolar AS berjuang untuk menemukan momentum dan detik-detik terakhir pajak penjualan di pasar ekuitas yang memecahkan rekor dapat membantu memberikan dorongan ke atas untuk emas minggu ini dalam perdagangan yang mungkin akan menjadi periode perdagangan liburan yang tenang, menurut beberapa analis. M...

If Fed Signals Weak Inflation, Gold Could Move Back Up To $1,300 - TD Securities
Tuesday, 12 December 2017 18:10 WIB

Setelah sesi perdagangan yang mengecewakan, satu bank melihat emas bisa mengakhiri pekan ini dengan catatan positif, dengan harga mungkin bergerak naik ke level $ 1.300 per ounce jika Federal Reserve pada hari Rabu nanti mengisyaratkan inflasi yang lemah. "Jika inflasi mengecewakan atau Fed mengkom...

ANOTHER NEWS
USD/CHF Flirting With Lows, Below Mid-0.9600 Amid Notable USD Weakness
Thursday, 18 January 2018 17:16 WIB Having posted a session high level of 0.9666, the USD/CHF pair came under some selling pressure and eroded part of previous session's strong recovery gains. Despite a strong follow-through upsurge in the US Treasury bond yields, renewed US Dollar...

DISCLAIMER

Seluruh materi atau konten yang tersaji di dalam website ini hanya bersifat informatif saja, dan tidak dimaksudkan sebagai pegangan serta keputusan dalam investasi atau jenis transaksi lainnya. Kami tidak bertanggung jawab atas segala akibat yang timbul dari penyajian konten tersebut. Semua pihak yang mengunjungi website ini harus membaca Terms of Service (Syarat dan Ketentuan Layanan) terlebih dahulu dan dihimbau untuk melakukan analisis secara independen serta memperoleh saran dari para ahli dibidangnya.