First Mining Gold Corp (FFMGF)

[ThSeeker]

Credit Suisse Sees Gold Averaging $1,338/Oz In 2017


December 8, 2016

Kitco

(Kitco News) – Credit Suisse has an upbeat view on gold for 2017, calling for the yellow metal to average $1,338 an ounce and draw support from increased trade protectionism, geopolitical-related currency volatility and improved Asian demand.

The bank looks for $1,275 gold in the first quarter and $1,400 in the final three months of 2017. The 2018 forecast was pegged at $1,375 an ounce.

The bank’s silver forecast was $17.80 for 2017 and $18.50 for 2018.

The Credit Suisse outlook, released Tuesday, called for gold to snap back after falling sharply since the Nov. 8 U.S. presidential election. The decline occurred as bond yields rose on expectations that a higher supply of government debt will be issued to fund deficits, as well as increased expectations for Federal Reserve rate hikes to combat inflation. Exchange-traded-fund holdings of gold have fallen 7%. Additionally, weakness in Indian demand played a role in gold’s recent slide, Credit Suisse said.