The coming year will likely bring more downward motion for gold and silver prices, with the price of gold possibly falling to $1,100, according to the Gold and Silver Mining Focus published by Metals Focus.
“We believe the high for the year is already behind us, while on the downside, further price weakness from current levels is possible,” the London-based precious metals consultancy said in a statement.
The research group has a similar forecast for silver prices, projecting its yearly average to drop below $20.
Despite the falling price, the group also believes there will be decreased supply of the yellow metal. Last year, it noted demand rose 17 percent, but supply fell 7 percent, with trade-ins also down. While supply is projected to rise this year, it still sees recycling decreasing, which will result in ongoing shortfalls that could “provide some support” for prices, it said.
At press time, gold was trading at $1,249 an ounce.