HSBC cuts gold, silver price forecasts for 2013 & 2014
Apr 28 2013
The bank cut its 2013 gold price forecast to $1,542 per troy ounce from $1,700 and the 2014 price outlook to $1,600 per troy ounce from $1,720.
The bank, however, expects gold prices to stabilise after the recent rout as retail demand for gold lends support with rising jewellery and gold coin purchases from Asia. Lower prices attract greater buying, especially in India and China. Based on the fragmented nature of this buying, it may take months for this new demand to feed into prices, HSBC analyst James Steel said.
HSBC also cut its 2013 silver price forecast to $26 per troy ounce from $33 and the 2014 price outlook to $27 per troy ounce from $31 earlier.
The bank said factors limiting price appreciation for silver were likely to be growing mine output.
Mine production has increased steadily for more than a decade and continues to grow, notably in Latin America and China, the bank said.