Precious Metals: Gold price forecast for Q2 is $1300 – ABN Amro

Gold prices have dropped by 9% since last week and other precious metal prices feel 30%. But there is more weakness to come, Georgette Boele, a Senior Precious Metals Strategist at ABN Amro informs.

Key quotes

“We expect financial markets to remain in a risk off mode in the coming weeks and months, which should result in more dollar strength and gold price weakness.”

“We expect that investors will liquidate more speculative net-long positions and ETF positions. Therefore, we expect a more pronounced weakness in gold prices than in other precious metal prices.”

“New gold price forecast for Q2 is USD 1,300 per ounce (was USD 1,450).”

“Even though we expect more price weakness for silver, platinum and palladium, the percentage drops will probably be smaller than last week’s experience.”

“In the second half of this year, we expect a rebound in precious metal prices. The rebound will probably be more substantial in silver, platinum and palladium than in gold.”