Gold to hit fresh record highs in 2027, investment demand to drive gains, Metals Focus says

Oct 5 (Reuters) - Gold prices are expected to reach fresh all-time highs in 2027 as investors seek alternatives to traditional dollar-denominated assets amid persistent inflation, growing US fiscal deficits and policy uncertainty, precious metals consultancy Metals Focus said in its annual report.

• The consultancy forecast gold to average $5,330 per ounce in 2027, about 22% higher than current levels, though the prospect of further US Federal Reserve policy tightening to tackle above-target US inflation could pose near-term headwinds.

• Spot gold hit a record high of $5,594.82 in late January, but has since retreated 25% due to surging energy prices and tighter Fed monetary policy. Currently, prices trade around $4,152.27. GOL/

• Metals Focus expects silver to strengthen over the next 12 to 18 months, benefiting from many of the same macroeconomic drivers supporting gold.

• It said renewed investor interest, rather than physical market tightness, should underpin gains, with silver forecast to average above $90 per ounce in the final quarter of 2027, after averaging $70 in the fourth quarter of 2026.

• Platinum is forecast to remain supported by continued market deficits despite easing physical tightness. Metals Focus expects the metal to average $2,060 per ounce in 2027, and mark a fifth consecutive annual market deficit.

• Among other platinum group metals, palladium's outlook is less favourable, with the consultancy forecasting an average price of $1,330 per ounce in 2027, citing weaker automotive demand, improving mine supply and higher recycling volumes.

• Among minor platinum group metals, Metals Focus expects iridium prices to rise in 2027 to $8,100 per ounce on a widening market deficit, while ruthenium is seen broadly stable at $1,570 per ounce. Rhodium, however, is forecast to fall to $7,500 per ounce as mine and secondary supplies increase.