Early forecasts for 2018 by J.P. Morgan has gold prices higher by end of the year
Early forecasts for 2018 by J.P. Morgan has gold prices higher by end of the year by Ken Schortgen – The Daily Economist
As we head towards the backstretch of 2017 it will not be took long before economic and financial analysts begin to publish their forecasts for the coming year. And already we have begun to see predictions on where gold might go from J.P. Morgan where on Dec. 4, the bullion bank informed clients that the precious metal price should move a bit higher by the end of next year, to a value of around $1340.
Gold prices will only see a relief from a more aggressive Federal Reserve in the end of 2018, says JP Morgan in its 2018 outlook, advising traders to short gold for now.
JP Morgan’s 2018 Global Commodities Outlook sees gold prices averaging $1,295 an ounce in 2018, with levels going up only in the second half of the year to $1,340.
“Current trade recommendations (mostly tactical): short gold,” JP Morgan said. “We have been short gold since late summer and are rolling this position into 2018.”
The outlook projects a similar path for all precious metals: “Given solid economic growth, a possible bottoming out in inflation and the potential further Fed repricing in 1H18 US real rates should rise in 1Q and 2Q, thus pushing prices lower,” the outlook said.
“Precious metals prices should stabilize mid-year and move higher into 2H on the assumption that given the aging US cycle the US economy might become increasingly vulnerable to further rate hikes ultimately pressuring real rates lower as the Fed potentially takes a pause,” the report added. – Kitco