Precious Metals And Their Prices Going Into 2018

The beginning of 2018 isn’t looking too well for precious metals, though they began 2017 strong.

According to reports from ABN AMRO, they expect the price of precious metals to come in at disappointing numbers. Senior analyst Georgette Boele of ABN AMRO says that she doesn’t see any of them going up much further in price.

In 2018, a higher U.S. dollar and U.S. Treasury yields will make for lower silver and gold prices. Gold has already been struggling the past few months, and investors were anticipating higher numbers. However, gold is appraised at being between $1,200-$1,250 an ounce during the upcoming year.

Also in 2018, the key policy rate at the Fed will rise close to 25 basis points. Doing so will greatly impact the price of precious metals. Though this seems dim, 2017 was an amazing year for metals such as palladium and gold.

Gold and Other Precious Metals Not Looking So Good Going Into 2018

What has expected from the U.S. economy and from president Trump left investors uneasy. Throughout the duration of 2017, these particular revisions lost momentum. The dollar was weak for the better part of the year. Be that as it may, the price of gold and silver did benefit from the weakened dollar.

Palladium was the biggest winner this year when it comes to precious metals. During 2017, it rose up 50% higher than it’s usual numbers. The demand for petrol cars, stronger fundamentals, and strong trade gains made for higher prices.

However, Boele says that investors should beware that the high price for palladium may not last as we transition into 2018.

She says that it is practically impossible to believe that extreme solid prices will remain the same. Her company believes that investors expectations for the precious metal are too high. There will be a lot of disappointment when they check the new prices.