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D E C E M B E R / J A N U A R Y 2 0 2 0
GOLD
Since 2016, the price of gold has traded in the US $1,200
and $1,300/oz range, but that changed drastically midway
through this year when the price finally broke out of its
confinement and peaked at just over US $1,550/oz in early
September. Since then it has flat lined around $1,500 before
falling back to around US $1,460. Analysts are mixed on
where it will go next but just as geopolitics was the catalyst
for the recent spike it will undoubtedly play the biggest
role in whatever it does next.
The Bank of Montreal (BMO) recently increased its
forecast through to 2022 citing that the current economic
climate is providing a boon for gold and BMO analysts see
gold prices pushing to $1,600 to average the fourth quarter
around $1,575. Looking ahead, for 2020, the bank sees the
gold price averaging next year at $1,506.
SILVER
Silver has been riding on gold's coattails, breaking out of a
US $14 to US $18/oz range and peaking at a shade under US
$20 in September this year but falling back to below the US
$17 mark this month. According to the World Bank, silver
prices are forecast to average 4.9% higher in 2020.
BMO sees relative outperformance continuing over the
Outlook
2020
COMMODITIES
by Ron Hall
NICKEL
