Goldman Sachs Analysts Predict Gold Rebound

APMEX

11/26/2018 10:49:41 AM

Daily Gold & Silver Market Report – 11/26/2018

• Major U.S. bank predicts higher Gold prices in 2019.
• Gold mining on the rise for the next four years.
• G20 Summit in Argentina could lead to more market stability.

In a report released Monday, analysts at Goldman Sachs predict a price surge for commodities over the next few months. They forecast this rebound will include Gold and other metals, and prices could lift as much as 17 percent. As quoted by CNBC, the report states, “Given the size of dislocations in commodity pricing relative to fundamentals with oil now having joined metals in pricing below cost support, we believe commodities offer an extremely attractive entry point for longs in oil, Gold and base." These predictions are driven in part by hopes the G20 summit meetings in Argentina this week will lead to resolutions to many of the trade tensions that have kept markets volatile this year.
Gold spot prices saw an increase in early trading Monday, with a weaker U.S. dollar and new Brexit concerns. The Goldman Sachs report suggests slower growth is expected for the U.S. economy next year, which could rally support for Gold. Many in the market have already planned for the expected interest rate hikes, and if central banks continue their shopping spree, this could add extra support.

Gold Production Expected to Rise through 2022

New market research indicates mining production of Gold will increase through at least 2022, with an average annual growth of 2.6 percent. This growth comes as interest in mining investments is on the rise due to somewhat higher prices and reliable industry financial reports. Market researcher Fitch Solutions states annual output could reach 115 million ounces per year in four years. While Mining.com says the report points to Russia as a leader in this expansion, U.S. Gold production is also expected to increase.

Market Watchers Hope for End to U.S.-China Trade War

This week, U.S. President Donald Trump and Chinese President Xi Jinping will meet at the G20 Summit in Buenos Aires, Argentina. Many investors are anxious to see an end to the ongoing trade war between the two countries. Escalating tariffs between the U.S. and China have sharply affected many industries while also leading to Precious Metals market volatility and widespread concerns about the future. Other notable events this week, listed in a roundup from Investing.com, include U.S. consumer confidence data expected Tuesday as well as Eurozone inflation numbers. A Canadian report on raw material inflation and GDP growth should be published by Friday.

At 11:37 a.m. (ET), the APMEX Gold and Silver spot prices were:

• Gold, $1,225.40 Down $0.10
• Silver, $14.35 Up $0.00
• Platinum, $846.00 Up $1.00
• Palladium, $1,151.50 Up $14.00

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