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Analysts on Gold: What’s in Store for the Rest of 2017

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Nov. 20 2020, Updated 2:11 p.m. ET

Median gold forecast

It’s always important to watch what Wall Street analysts are forecasting for gold prices for both the short term and long term. This helps investors understand gold’s price outlook and the future potential courses of gold investments.

Gold investments include physical gold, ETFs like the VanEck Vectors Gold Miners ETF (GDX), and equities like Agnico Eagle Mines (AEM), Sibanye Gold (NGD), and IAMGOLD (IAG).

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Citi’s and UBS’s views

Citigroup (C) analysts believe that gold prices will peak in 2Q17. They also note that further headwinds could continue in 3Q17. Meanwhile, Credit Suisse (CS) analyst Anita Soni is also positive on the gold price outlook. Soni holds this view on the belief that US real interest rates might have a surprise downside and that the US dollar may weaken.

UBS notes that gold’s strength is justified due to macro factors. UBS analysts stated: “In particular, lower rates, [the] weaker dollar, and broader uncertainty provide [a] good foundation for the market to continue its journey higher.”

UBS analysts also believe that despite the rally from May lows, there should still be room for a further upside in the precious metal.

Deutsche Bank

Deutsche Bank (DB) believes that while gold might be somewhat expensive, it could still rise in the coming three months. In a special report, DB stated: “We feel investors should prepare for a flight to gold.” This, the bank notes, will be due to the increasingly uncertain global climate.

Notably, in the same report, Deutsche Bank focused on stocks like Newmont Mining (NEM), Evolution Mining, St. Barbara Mining, and Alacer Gold (ASR).

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