Gold Seen Averaging $1,219 in LBMA Survey After 2013’s Slide

Gold will average $1,219 an ounce this year and gain as much as 10 percent from now, after posting its biggest annual decline in three decades, a London Bullion Market Association survey of traders and analysts showed.

The metal will reach $1,379 and trade above $1,067 through December, the mean response of 28 participants shows. Prices slumped 28 percent last year, the most since 1981, and averaged $1,411, the least in three years. Silver will rise as much as 19 percent to $23.94 an ounce by December, platinum 13 percent to $1,650 an ounce and palladium 16 percent to $863.21 an ounce, the LBMA said today in an e-mail.

Bullion declined for the first time since 2000 and more than $73 billion was erased from the value of gold-backed funds last year as some investors lost faith in the metal as a store of value. The Federal Reserve said Dec. 18 it will trim monthly bond purchases to $75 billion from $85 billion, easing concern about faster inflation. As prices fell in December toward a 34-month low set in June, demand for jewelry, coins and bars increased.

Gold for immediate delivery traded at $1,248.84 by 11:21 a.m. in London. The Standard & Poor’s GSCI gauge of 24 commodities lost 2.2 percent last year, the MSCI All-Country World Index of equities climbed 20 percent and the Bloomberg Dollar Spot Index gained 3.5 percent. The Bloomberg U.S. Treasury Bond Index declined 3.4 percent.

To contact the reporter on this story: Nicholas Larkin in London at nlarkin1@bloomberg.net

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.