Our 2017 US geoeconomic forecast is for more of the same — with increasing probabilities of much worse. For example, the potential for economic panic will dramatically increase should war tensions in the Middle East and with North Korea escalate, or major debt-laden nations such as Japan, Italy, China, etc., falter, and/or social unrest continues to escalate and spread in countries such as Venezuela and South Africa.
On the gold front, we maintain our forecast: Depending on how much and how fast the Federal Reserve raises interest rates, and how high the dollar index rises, gold’s downside is approximately $1,100 per ounce. On the upside, when gold prices strongly break above $1,400 per ounce, we forecast a sharp spike toward $2,000 an ounce.