The price of gold falls
9 March 2017
The world Bank has given a confirmation of long-standing forecast that the price of gold decreases. Representatives of the Bank declared the cost of one ounce (29.8 per gram) precious metal that will reach fifteen hundred dollars. The company’s Commodities Outlook released a report which indicated a significant decline in gold prices during the year. It is already known that the yellow metal drops for several years. Recall that in 2012 the price of an ounce of gold was $ 1690 $. But already in 2015 prices have dropped to 1160 $. Last year, an ounce of gold metal requested 1247 $.
Based on the results of market research over the past few years, all precious metals will go down in price for this year. Assume that the price will fall by around 7%. This will be a weak investment demand. In addition, the Bank provides some more options: rising interest rates and a stronger dollar on the market.
Gold, according to experts, will fall in price by 8 per cent. The reason for this is insufficient demand for precious metals. In this case, the value of silver will decline slightly, by just 4%. At a time when platinum, according to the world Bank, probably more expensive. The increase in the price of platinum is not particularly significant. It depends on regularity of supply of the metal.
Predictions for lowering the cost of metal is more important than approximate percent growth in the United States. Downside risks are composed of several factors. First of all, the large demand growth in China and India. Also, more importantly, the growth impact of geopolitical conflicts and problems with the supply.
At that time, as all your favorite precious metals lose their value, manufacturers of industrial metals — are rejoicing. They are seriously counting on an increase in income. The world Bank argues that for these products is expected to increase prices in the range of 11%. In this regard, the obvious fact remains that conditions in the market of industrial metals are much tougher. The report suggests that this is inevitable, because the scarcity of resources is increasing.
The attention of specialists, in connection with the raising of prices, concentrated on lead and zinc. The estimated percentage price increase is 27% and 18%, respectively. This will contribute to a partial disruption of supplies of metal. In addition, the projected small increase in prices for tin, copper and Nickel.
