The precious metals market is expected to welcome 2022 in a relatively smooth form. However, according to BMO Capital Markets analysts, tighter interest rates that started early next year may put pressure on gold and silver. BMO Capital Markets analysts shared the levels that gold will see in 2021, 2022 and 2023.
BMO Capital Markets analysts: We will be surprised to see an aggressive rise in the price of gold in 2021-22
In the updated precious metal claims, analysts left their 2021 gold and silver outlook unchanged. However, BMO Capital Markets analysts have lowered their outlook for 2022 and 2023. The Bank of Canada claims that gold prices this year will be around $1,815 per ONS, relatively unchanged compared to its previous assumptions. BMO Capital Markets analysts add the following to their explanations for the bet:
Compared to other commodities, 2021 hasn’t been a good year for gold. Current prices have dropped from end-of-2020 prices and funds have come out of ETFs. While precious metals are currently tracking the potential cycle of the Federal Reserve’s price decline, we expect a relatively stable foothold for gold and silver demand from both central banks and ETFs over the next few months, particularly amid increased market volatility. In a world where the global economy is clearly in recovery mode, the focus naturally shifts to the intentions of the central bank, particularly the Federal Reserve. We expect some measure of impact on gold reserves, but given negative real returns, heightened geopolitical tensions and the potential for broader market volatility, we would be surprised to see an aggressive exit in 2021-22.
BMO Capital Markets analysts announced the levels that the gold price will see in 2022 and 2023
The bank expects gold prices to drop below $1,800 next year, with an annual average of around $1,731. Analysts expect gold prices to average around $1,630 in 2023, down 6% from previous claims. BMO Capital Markets analysts add the following to their explanations:
We lowered our gold expectations for 2022 and 2023 due to the accelerated emission reductions and the expected increase in interest rates. That leaves gold prices on average above $1,750 through 2023.
BMO Capital Markets analysts expect a rise in silver
The bank sees a little more potential for silver prices as it raises its price cuts for 2023. Analysts claim that the average silver price will be around $26.80 per ONS in 2021, and this number has remained relatively unchanged compared to the previous assumption. In the midst of this, next year, the bank expects silver to average $25.80 per ONS, 0.2% below their previous estimate.
However, by 2023, the bank expects the price of silver to be around 24.30 per ONS, slightly higher than its previous assumptions. As the global economy continues to recover from the COVID-19 pandemic, demand for silver as a money metal is expected to continue and industrial demand to grow. BMO Capital Markets analysts add the following to their explanations on the subject:
As growth in demand from investments in solar PV systems gains more recognition, we see an opportunity to upgrade our silver investment rating in the years to come. While silver is still being saved on solar technology, it’s not replacing it. Given the favorable medium-term outlook, our 2025 silver price has been increased by 10%.
BMO Capital Markets analysts: This is a positive medium-term outlook for copper
BMO said they were often more optimistic about non-ferrous metals than pricey metals, as they refurbished their industrial metals everywhere. BMO Capital Markets analysts add the following to their explanations:
If there has been any credence in the commodity markets, this is a positive medium-term outlook for copper. Nearly everyone agrees that by the middle of this decade the world will face a major copper issue that needs to be addressed. Analysts say global electrification is boosting demand.
As we reported earlier , for more gold assumptions “Famous Analysts Warn: Gold Price Can Be Sell More!” You can review our article.