The gold market in 2017

Published 13th January 2017

Categories: Investment

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In 2016, investors around the world returned in large numbers to the gold market, as a combination of macroeconomic drivers and pent up demand kept interest in gold high. As we start the new year, there are some concerns that US dollar strength may limit gold’s appeal. We believe that, on the contrary, not only will gold remain highly relevant as a strategic portfolio component, but also six major trends will support demand for gold throughout 2017.

The World Gold Council's 2017 Outlook comprises four sections. A section on major trends that will support, in our view, gold performance this year. And three short sections from notable economists that gauge the economic outlook for the US, Europe and Asia, respectively. Our guest contributors are:

  • Jim O’Sullivan, Chief US Economist at High Frequency Economics, dubbed ‘most accurate forecaster in America over the past 10 years’ by MarketWatch
  • John Nugée, renowned economic and geo-political commentator and former Reserves Chief Manager at the Bank of England
  • David Mann, award-wining economist and Chief Economist for Asia at Standard Chartered Bank.

Using the economic perspective from our guest economists as a backdrop, we believe that there are six major trends in the global economy that will support gold demand and influence its performance this year:

  1. Heightened political and geopolitical risks
  2. Currency depreciation
  3. Rising inflation expectations
  4. Inflated stock market valuations
  5. Long-term Asian growth
  6. Opening of new markets.