SEATTLE (Scrap Monster): The major banks and brokerages, in their response to a Reuters poll, have predicted modest recovery to gold prices. According to the poll, silver is likely to outperform gold. It must be noted that gold had slumped to 19-month lows in August this year, but has regained some of the lost grounds henceforth.

Spot gold prices are likely to average $1,273 per Oz in 2018 and $1,300 per Oz in 2019, significantly lower when compared with estimates of $1,301 per Oz and $1,325 per Oz respectively, declared in July ’18. Meantime, the silver prices are likely to average at $15.80 per Oz in 2018 and $16.40 per Oz in 2019. The previous poll, conducted three months ago, had predicted $16.70 per Oz in 2018 and $17.52 per Oz in 2019.

Year-to-date, silver prices have fallen faster than gold. The gold/silver ratio had hit a 23-year high of 85 during September. However, analysts expect silver to cover some of its losses. The strong retail demand coupled with lack of new mines coming online may lend support to silver prices. Traditionally, high gold prices results in outperformance of silver market. Consequently, the gold-to-silver ration is likely to decline to 76.5 before the end of next year.

Gold lost its value by more than 15% since the beginning of the year until August, touching the lowest level of $1,159.96. Since then, it has recovered modestly to $1,235 per Oz. The looming economic and political risks are likely to benefit gold. On the other hand, the rising strength in US economy and dollar may limit price growth.