Metal Focus Sees Gold Prices Hitting Six-Year Peak in 2019

Author:Suny Group

The most recent report published by the consultancy Metal Focus predicts gold prices to hit six-year highs during the current year.

According to the report, the worldwide consumption of the yellow metal is expected to total around 4,370 tonnes in 2019. This is marginally higher when compared with the consumption of 4,364 tonnes in 2018. The consumption level during this year would be the highest since 2015. The consumption by jewelers is likely to surge higher. On the other hand, purchases by central banks are likely to record decline in 2019.

The report titled ‘Gold Focus 2019’ foresees gold prices to average around $1,310 in 2019, which again is slightly higher when compared with the prior year. It must be noted that the gold average prices had stood at $1,268 in 2018. The projected average gold price for 2019 is the highest level since 2013, the report said.

The rise in global gold demand will be mainly driven by increased demand in India and China. The gold demand in India and China are likely to surge higher by 7% and 3% respectively. Meantime, the report foresees drop in demand in the Middle East.

The report predicts 9% drop in total gold purchases from the financial sector. It must be noted that central bank gold purchases had surged higher by 75% in 2018. Also, Metal Focus predicts marginal increase of 1% in gold’s overall supply, which is likely to total 4,707 tonnes. Increased mine production, recycling and producer hedging are likely to contribute to the jump in gold supply.