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.


  • India can increase its GDP by letting women take as much part as men in the economy

    Women hold up half the sky. So said Mao Zedong. Now, McKinsey Global Institute (MGI) tells us that they can hold up more than half the sky.


Stay informed on our latest news!


Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs


Amita Sharma

Rank disorder in higher education

Two Indian institutes count among the wo­rld’s top 200 in ...

Zehra Naqvi

Little known gems

Fame, as they say, is a fickle mistress. And all ...

Bubbles Sabharwal

Harmony is a work in progress

Things, events, feelings, people... nothing has value attached to it, ...


William D. Green

Chairman & CEO, Accenture