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Survey: Analysts Expect Gold Prices To Surge 13% In 2017

By ETF Daily NewsCommoditiesJan 03, 2017 12:52AM ET
www.investing.com/analysis/survey:-analysts-expect-gold-prices-to-surge-13-in-2017-200171255
Survey: Analysts Expect Gold Prices To Surge 13% In 2017
By ETF Daily News   |  Jan 03, 2017 12:52AM ET
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According to a recent survey of Wall Street analysts, gold prices will jump higher this year, as investors pile into the safehaven asset amid the roller coaster ride of a Donald Trump presidency.

Other risk factors that could propel the yellow metal higher in 2017 include a potential trade war between the U.S. and China, tensions with Russia regarding alleged hacking of the DNC, and continued Brexit-fueled turmoil in Europe. From Bloomberg:

While the precious metal has always been hoarded in times of trouble, a bevy of political and economic surprises in 2016 sparked a surge in buying that sent bullion to the first annual gain in four years. Prices may rally about 13 percent in 2017, according to a Bloomberg survey of 26 analysts.

Of course, all of those factors were in play toward the end of 2016 as well, and gold prices fell about 1.5% in December. But that isn’t stopping many pundits from making bullish forecasts:

More than two thirds of the analysts and traders surveyed from Singapore to New York said they were bullish for 2017. The median year-end forecast was $1,300, with the year’s peak seen at $1,350. Two, including O’Byrne, said the metal may reach $1,600.

On the bearish side of things, we’ve seen big outflows in gold ETFs since the November election, in a sign that the demand for gold exposure waned considerably into the end of last year. If demand continues to weaken, gold prices will almost certainly follow suit and drop even further.

Despite that clearly negative trend, the majority of analysts are still bullish on gold. The average forecast of a 13% rise would be the largest yearly gain since 2010.

That divergence in price action from sentiment likely means volatility in gold prices and gold ETFs will continue for the foreseeable future.

SPDR Gold Shares (NYSE:GLD) closed at $109.61 on Friday, down $-0.68 (-0.62%). In 2016, GLD (NYSE:GLD) gained 8.03%, versus a 10.78% rise in the benchmark S&P 500 index during the same period.

GLD currently has an ETF Daily News SMART Grade of C (Neutral), and is ranked #2 of 29 ETFs in the Precious Metals ETFs category.

Survey: Analysts Expect Gold Prices To Surge 13% In 2017
 

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Survey: Analysts Expect Gold Prices To Surge 13% In 2017

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Brad Smith
Brad Smith Jan 03, 2017 8:58PM GMT
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Also in regards to GLD, why is there a clause in the GLD prospectus that states GLD has no right to audit subcustodial gold holdings? Why would the organizations behind GLD forfeit this right and create this massive audit loophole? I haven't heard of a single good reason for the existence of this loophole so far. In addition to the audit loophole, GLD claims to be fully backed by physical gold bullion but yet it refuses to give retail investors the right to redeem for any of these ‘claimed’ gold bullion. ..I remember CNBC's Bob Pisani visiting GLD's vault in a well documented segment. GLD's administration arranged this visit to disprove everyone claiming that GLD's gold did not exist. However, Mr. Pisani held up a gold bar with the following serial number - ZJ6752. This serial number did not appear on the most recent bar list during that time period. Cheviot Asset Management’s Ned Naylor-Leyland later found out that this "GLD" bar actually belonged to ETF Securities.
Brad Smith
Brad Smith Jan 03, 2017 8:57PM GMT
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"SPDR Gold Shares (NYSE:GLD) closed at $109.61 on Friday, down $-0.68 (-0.62%)."..Speaking of GLD, did anyone try calling the GLD hotline at 866▪320▪4053 in search of numerical details on GLD's insurance? The prospectus vaguely states "The Custodian maintains insurance with regard to its business on such terms and conditions as it considers appropriate which does not cover the full amount of gold held in custody." When I asked about how much of the gold was insured, the representative proceeded to act as if he didn't know and said they were just the "marketing agent" for GLD. What kind of marketing agent would not know such basic information about a product they are marketing? It seems like they are deliberately hiding information from investors.
Albert Harmanto
Albert Harmanto Jan 03, 2017 9:51AM GMT
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I am agree bullish for gold this year
 
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