Gold could average $1,223 per ounce in 2015 but improved supply/demand dynamics should push the price higher in future years says Standard Bank report.

The bank has reportedly forecasted that the yellow-metal to average $1,305 in 2016 and $1,450 in 2017. Gold struggled in the face of a stronger dollar and amid surging equity markets in the fourth quarter of last year but has since found its feet in January, adds a report.

Further the report added that physical demand, which is soft at the moment, should improve in China just after the New Year Holiday in mid-February and then again when the Indian wedding season kicks in. In the medium- to long-term, the bank expects global gold demand to outpace supply at an increasing rate, it said. World-wide global production is seen declining around two per cent per year over the next five years, brought about by the industry having to adjust to decline in the gold price. Should the gold price remain below $1,200 for a protracted period, the production decline could accelerate significantly, the report said. Meanwhile, the evolution of Chinese jewellery market this year could be a swing factor in the supply and demand equation, it added.

The gold market could post as a surplus of 322 tonnes in 2015 and of 138 tonnes in 2016, before moving into deficit of 48 tonnes in 2017, adds a report. Silver is expected to average $21.00 per ounce this year and $23.00 in 2016, Standard Bank said. Platinum will average $1,300 per ounce in 2015, $1,450 in 2016, and $1,675 in 2017, while palladium will average $833 per ounce in 2015, $900 in 2016 and $975 in 2017, adds a report.