Gold forecasters are optimistic about the prospects of price gains for the rest of 2017 as  they expect investors will  seek a store of value amid political uncertainty. Spot gold traded around $1,247/oz on Monday, showing a $100/oz gain since the beginning of 2017. For South African investors, gold has become more attractive in the past week as political events have weakened the rand. Higher gold prices coupled with rand weakness would also boost the share prices of JSE-listed gold mining companies. The GFMS Gold Survey 2017, published by Thomson Reuters on Monday, predicts gold will average $1,259/oz in 2017 on global risk aversion and the resumption of Indian buying. In its previous annual survey, the firm predicted gold would average $1,164/oz in 2016. The actual average was $1,250.80/oz. "The market is not yet quite out of the woods, but the longer-term prognosis is for further price gains even against the headwind of the US Federal Reserve raising rates," GFMS researchers said...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now