Safe-Haven Demand Will Be 'Swing Factor' For Gold in 2016

The London Bullion Market Association released its annual survey with the industry’s top precious metals' forecasts for the year.
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Kitco News – The London Bullion Market Association (LBMA) releases an annual survey with the industry’s top precious metals' forecasts for the year. The newly released 2016 survey shows that more and more analysts are bullish on gold. One forecaster, Will Adams, head of research for the U.K.-based firm, FastMarkets, says he is expecting gold to work in a range of $980-$1,222 in 2016. ‘We have had a strong run-up and the market was caught off-guard; we have seen strength come in and some investors who missed the initial [gold] rally are chasing prices higher now,’ he said in an interview with Kitco News. Adams added, ‘we probably will start running into some resistance soon.’ Gold prices are higher and hit a 3.5-month high on Thursday, with April Comex gold last up $8.30 at $1,149.60 an ounce. ‘Safe haven demand will likely be the swing factor for gold, since equity markets look weak after extremely powerful bull markets, we would not be surprised if money rotates out of equities and into safer havens,’ Adams said. On the silver front, Adams is forecasting the metal to trade in a range of $12.80-$17.40 with an average price of $16.20 an ounce. March Comex silver was last up $0.096 at $14.83 an ounce.