Gold dipped to a two-week low on Monday hurt by a stronger dollar and investors moving money into equities with major US stock markets continuing to trade at record levels.
Gold for delivery in February, the most active contract on the Comex market in New York, was exchanging hands at $1,187.20 in late afternoon dealings, trimming year-to-date gains for the metal to 3%.
Upside risks include geopolitical tensions, stronger demand in China and India, delayed rates hikes, and mine supply shortfall
The World Bank this week joined the chorus of gold bears forecasting a drop in the gold price to an average $1,150 an ounce in 2017 in its January Commodities Outlook. That compares to an average gold price of $1,247 an ounce last year, compared to 2015’s average of $1,160, but nowhere near 2012’s $1,689:
Precious metals prices are projected to fall 7 percent in 2017, mainly due to weak investment demand, prospects of a stronger dollar, and rising real interest rates.
Gold prices are expected to decline 8 percent on weak investment demand, while silver prices are expected to fall 4 percent. Platinum prices are projected to rise marginally on likely tightness in supply. Downside risks to the forecast are stronger economic growth and faster than expected increases in U.S. interest rates.
The largest gains are expected in zinc (27%) and lead (18%)
Upside risks include geopolitical tensions, stronger demand in China and India, delayed rates hikes, and mine supply shortfall.
In contrast, industrial metals producers can look forward to a bullish 2017 with prices projected to increase by 11% in 2017 “due to tightening markets for most metals, especially those facing imminent resource constraints”:
The largest gains are expected in zinc (27 percent) and lead (18 percent) due to mine supply constraints brought on by permanent and discretionary closures. Double-digit gains are also expected for copper, nickel, and tin.
Upside risks to prices include stronger global demand, slower ramp-up of new capacity, tighter environmental constraints, and policy action that limits supply. Downside risks include slower demand in China and higher-than-expected production, including the restarting of idled capacity.
NO fear. The WB doesn’t really want you to treat gold as an investment and sell into fiat currency as so many have surmised. They want us all to save the fiat system, the banks and the whole economy by monetizing it and spending it directly into the real economy with digital bullion mass transfers as the payment with mass as the debt-free unit of account….. fully backed by the real deal, of course.
The economy gets support.
Fiat currency can then be safely purged, restoring value to fiat currencies.
We simply need some much required “Yang” with our existing “Yin” to complete the total model for global liquidity.
Help the world support the real economy while also providing for the safe purging of ugly debt.
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therooster57
NO fear. The WB doesn’t really want you to treat gold as an investment and sell into fiat currency as so many have surmised. They want us all to save the fiat system, the banks and the whole economy by monetizing it and spending it directly into the real economy with digital bullion mass transfers as the payment with mass as the debt-free unit of account….. fully backed by the real deal, of course.
The economy gets support.
Fiat currency can then be safely purged, restoring value to fiat currencies.
We simply need some much required “Yang” with our existing “Yin” to complete the total model for global liquidity.
Help the world support the real economy while also providing for the safe purging of ugly debt.
Goldmoney.com/r/0UZxqF
We all win !