Gold industry sees prices rebounding to $1,347.40/oz over 12 months

Delegates to the annual conference by the London Bullion Market Association (LBMA) expect gold to rebound to well above $1,300 an ounce over the next 12 months.

Spot gold is seen at $1,347.40 an ounce by October next year. Gold has shed 8 per cent from a two-year high in July amid expectations for a US interest rate hike by year-end. It was trading at about $1,262 on Tuesday.

A separate Reuters poll of some delegates to the conference predicted that gold would recover to above $1,300 an ounce next year as a pickup in physical demand counters more potential US rate increases.

Silver, which has gained 27 per cent this year to outpace gold, is projected to hit $20.90 an ounce by October 2017, the LBMA poll showed. Platinum is forecast at $1,055.30 an ounce and palladium is seen at $752.50.