October 18, 2016 / 9:11 AM / a year ago

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

SINGAPORE (Reuters) - 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.

FILE PHOTO - Gold bullion is displayed at Hatton Garden Metals precious metal dealers in London, Britain July 21, 2015. REUTERS/Neil Hall/File Photo

Spot gold is seen at $1,347.40 an ounce by October next year. Gold has shed 8 percent from a two-year high in July amid expectations for a U.S. 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 U.S. rate increases.

Silver, which has gained 27 percent 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.

Reporting by Manolo Serapio Jr.; Editing by Himani Sarkar

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