Outlook on Precious Metals, Gold, Silver: JP Morgan, BoA Merrill Lynch , Morgan Stanley , Goldman Sachs, Citi

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JP Morgan

Gold: Expect prices to stabilize mid-year and move higher into 2H on the assumption that given the aging US cycle the US economy might become increasingly vulnerable to further rate hikes ultimately pressuring real rates lower as the Fed potentially takes a pause. Expect prices to average around $1,295/oz
Silver: Anticipate prices to largely trade in sync with gold throughout next year, with inflection point in 2H18. However, foresee greater upside potential in silver given its historical tendency to outperform gold during outsized rallies. Prices to average ~17.85/oz for FY2018
Platinum & Palladium: Expect prices to largely trade in sync with gold throughout next year with palladium continuing to trade above platinum in 1H18 but ceding ground in 2H18 as platinum rises into year-end. Prices to average ~$960/oz for the whole year

Citi
Gold: Remain mildly bearish on the price outlook for 2018 in line with the shortterm bearish forecasts on rates. Average 2018 price expected at $1,270/oz
Silver: Expect prices to grind lower in 2018 due in part to a decline in total physical demand and persistent scrap flow. 2018 average price estimated at $16.7/oz
Platinum & Palladium: Expect the spread between the two metals to widen further through 1H’18 with Palladium outperforming basis a sustained deficit and higher demand from gasoline vehicle growth globally and especially in Europe. Expect 2018 prices at $1,100/oz for Palladium and $940/oz for Platinum

Goldman Sachs
Gold: Bearish on Gold basis continued robust DM GDP growth, more Fed hikes, and no deterioration in geopolitics nor a recession arriving in 2018. Expect prices to average near $1,225/oz in 2018
Silver: Expect prices to go down over the next six months, beyond which prices are likely to increase and outperform gold as high global growth should translate into greater industrial use of silver

Morgan Stanley
Gold: Expect price to remain weighed upon by the Fed's rate hike cycle, balanced by geopolitical tensions – creating a stable market outlook. Forecast 4Q18 gold price at US$1,250/oz

BoA Merrill Lynch
Gold: Expect rising US rates and a stronger USD to likely sustain headwinds to gold. A US tax deal may also be bearish on various accounts. Expect only limited upside to prices in 2018. 12m price target of ~1,350/oz
Silver: Expect limited upside to prices given a sub-dued industrial demand and the lack of interest by non-commercial buyers. With only limited scope for improvements in the sector, expect fair value of ~ $17.50/oz.
Platinum: Expect market to remain oversupplied as South Africa’s producers have been reluctant to cut supply more aggressively. 2018 prices are expected to average around $950/oz
Palladium: Do not expect any major upside in 2018. Expect prices average near $850/oz