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© Heraeus Analysis | January 29, 2018

The US dollar will weigh down gold and silver in 2018

Heraeus says that a stronger US dollar will weigh down gold and silver in 2018, while industrial demand will prop up the platinum group metals.
Heraeus Precious Metals has published its new Precious Forecast for 2018, in which it provides an overview of 2018 as well as background information regarding the price developments of precious metals.

The upturn in the price of gold will flatten: Gold gained 12% in 2017, but Heraeus expects a stronger US dollar to reverse gold’s current upward trend over the course of the year. Other factors include reduced central bank liquidity as well as rising yields on government bonds. The political conflicts in Korea and the Middle East may nevertheless counteract this since gold remains a safe haven for investors. We expect trading to range between USD 1,175 and USD 1,375/oz.

The price of silver is connected to the developments in the price of gold: In 2017, industrial demand for silver grew slightly due in large part to the rapidly growing photovoltaic industry. This trend could continue in 2018, but it will not be sufficient to drive further growth. Without new interest from investors, the price of silver will echo developments in the price of gold. Lower prices are expected this year. The experts at Heraeus Precious Metals expect trading to range between USD 15.25 and USD 18.00/oz.

The price of platinum recovering: The market conditions for platinum will improve in 2018. Demand from the jewelry industry is expected to climb, while the drop in demand due to the automobile industry’s diesel scandal will slow. We expect an average price between USD 860 and USD 1,050/oz.

The price of palladium will settle at its currently high level: Palladium has profited in recent years from strong growth in the automobile industry, which is responsible for 80% of demand. The removal of tax incentives in China, the industry’s most important automobile market, as well as weaker growth in US markets will restrain this growth considerably. Prices are expected to range from USD 900 to USD 1,170/oz.
More information from Heraeus and the entire forecast can be found here.
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November 14 2018 11:24 am V11.8.1-2