Second firm predicts stable precious metal prices

 

July 15, 2014

New York--The wild ride is over, or at least on pause, for now. 

A second precious metals analyst told National Jeweler that he expects gold and silver prices to remain relatively steady in the foreseeable future, as investors normalize their approach to precious metal buying in light of the improving global economy.

Philip Newman, a director at London-based Metals Focus, which just published its silver five-year forecasting quarterly, said that the per-ounce price of silver has picked up as of late due to uncertainty in the Middle East and concerns about the banking sector in Portugal. 

After trading at $18 to $19 per ounce, the metal is now trading above $20, closing Monday at $21.13 per ounce on the London fix, according to Kitco.com

The same has been seen with gold (the per-ounce price of the two metals broadly moves in tandem), which was trading around $1,250 per ounce before topping $1,300 again, closing Monday at $1,306 per ounce on the London PM fix, according to Kitco.com

Newman said he does not see the metals continuing to build on these gains and expects a correctional slump later in the year, but not a massive one. Prices for both metals will trade in a narrow range for the foreseeable future, hitting a low at some point in 2015.  

He said there is less volatility in the metals markets now because investors are balancing their portfolios. This mirrors the forecast recently given by Andrew Leyland, a London-based metals analyst with GFMS, Thomson Reuters, who described silver, gold and platinum prices as “range-bound” in a quiet market. 

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