HSBC cuts gold, silver price forecasts for 2013 & 2014

Tags: Commodities
HSBC lowered its gold forecast for this year and next on Friday, saying the recent tumble in prices for the yellow metal has dealt a severe blow to investor confidence, which may take many months to restore.

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.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Sebi’s latest ban on 260 entities plugs a major loophole for stock manipulation

    Last week, the capital market regulator, Securities and Exchange Board of India (Sebi) banned 260 entities from dealing in the securities market for m

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Arun Kumar Jain

Nuances in managing joint ventures

This is an age of collaboration. A seemingly simple device ...

Kuruvilla Pandikattu SJ

Finding the missing child of Christmas

Christmas is basically the feast of a helpless child. The ...

Shona Adhikari

Why Indian art auctions are here to stay

With Christie’s second India sale just over in Mumbai, we ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture