Some “just right” US economic data, with activity and inflation neither too hot nor too cold, has boosted the prices of equities and commodities this week. What’s more, the gold price has resumed its climb, as rising inflation expectations have offset fading safe-haven demand and higher US bond yields. This has encouraged us to revise our forecasts for key precious metals higher. Our new end-2016 forecasts are $1,350 per ounce for gold (previously $1,250) and $19.50 for silver ($16.50), with further gains, to $1,400 and $21 respectively, in 2017.
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