Gold will drift lower in the second half of 2014, leading to a second annual drop in the average price after a dizzying decade-long rally, as US monetary policy returns to normal and Asian demand continues to be weak, analysts forecast in a Reuters poll.
The survey of 31 analysts and traders this month returned an average forecast for the third quarter at $1,270 an ounce, down from the average first-half price of $1,290 an ounce. In the last three months of the year, it is seen averaging $1,255 on the LME. For the full year, respondents returned an average forecast of $1,277 an ounce, little changed from a forecast in a similar Reuters poll conducted in early April.
That will mark a second year in which gold’s average price has fallen, following a 15.5 percent retreat in 2013, the first drop in more than a decade.
Indian silver saw a 1.9 percent drop on Tuesday, July 22, landing at INR 45,001 ($745.76) per kilogram and making it the biggest mover of the day. Chinese silver finished the day up 0.2 percent to CNY 4,345 ($699.80) per kilogram. US silver prices inched up 0.2 percent to $20.93 per ounce. At JPY 679.00 ($6.70) per 10 grams, the price of Japanese silver was essentially unchanged.
Chinese gold bullion gained 0.3 percent to finish at CNY 262.25 ($42.24) per gram. US gold bullion stayed flat at around $1,312 per ounce. The price of Indian gold bullion showed little movement yesterday at INR 27,955 ($463.28) per 10 grams. The price of Japanese gold bullion flattened at JPY 4,272 ($42.12) after two days of improvement.
At $1,486, the price of US platinum bar finished the market day up 0.1 percent per ounce. Chinese platinum bar saw little change in its price yesterday at CNY 315.00 ($50.73) per gram. The price of Japanese platinum bar remained essentially flat at JPY 4,872 ($48.04) per gram.
Chinese palladium bar closed 0.5 percent lower at CNY 193.00 ($31.08) per gram. US palladium bar finished the day down 0.5 percent to $874.00 per ounce. For the fifth day in a row, the price of Japanese palladium bar remained essentially flat at JPY 2,875 ($28.35) per gram.