Gold to Advance to Record $1,406 an Ounce in 12 Months, LBMA Survey Shows
Gold may advance 8 percent to a record $1,406 an ounce in a year, according to the average in a survey of those attending the London Bullion Market Association’s conference in Berlin this week.
The metal for immediate delivery rose as much as 0.3 percent to an all-time high of $1,300.15 an ounce in London trading today, heading for a 10th consecutive annual advance. That’s the longest winning streak since at least 1920.
“Most likely it’s uncertainty driving demand,” Bayram Dincer, an analyst at LGT Capital Management, said today in Berlin. Investors “don’t know about deflation or inflation, but they know about uncertainty. People are expecting good demand and good support for gold.”
Gold held through 10 providers of exchange-traded products reached a record 2,089.74 metric tons on Sept. 22, according to data compiled by Bloomberg. That’s almost as much as the combined official reserves of China and Switzerland, based on data compiled by the London-based World Gold Council.
A survey of about 140 attendees at last year’s conference in November forecast gold to climb to $1,181 by this month. There are more people at this year’s conference, LBMA Chief Executive Officer Stewart Murray said today. The LBMA plans to hold its conference in Montreal on Sept. 19 next year.
Prices have gained this year even as U.S. inflation slowed. Bullion is traditionally bought as a hedge against rising consumer prices.
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