Median gold forecast
Looking at Wall Street analysts’ views could help investors understand the reasons behind gold’s price outlook and help them decipher the path that gold investments are likely to take.
RBC and Citigroup’s take
RBC believes that three rate hikes have been priced into a $1,200 per ounce floor gold price and $1,300 per ounce ceiling. It believes that, under such a scenario, four gold stocks could be worth considering. Newmont Mining (NEM), Kinross Gold (KGC), Royal Gold (RGLD) and Silver Wheaton (SLW) are the stocks that could “outperform,” according to RBC.
Goldman Sachs and HSBC
In a report issued on March 10, 2017, Goldman Sachs analyst Abhinandan Agarwal stated that “As the market begins to re-price its expectations of rate hikes this year, we believe it could be a significant negative catalyst for gold. However, given that some of the policies being put forth by President Donald Trump (like trade barriers and border adjustment tax) could be beneficial to gold, we take a more neutral view on gold prices going forward.”
According to Reuters, HSBC analyst James Steel said that “The (gold) rally appears intact, but we think a near-term bout of profit-taking may materialize at any time, especially if there is a slowdown in ETF accumulation demand or reduced long participation on the Comex.”