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.

EDITORIAL OF THE DAY

  • Public musn’t pay for domestic servants for our diplomats

    Nothing seems to have changed in the year and half since the fur that flew thick and fast over the case of diplomat Debjani Khobragade and her maid Sa

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

Urs Schoettli

Economic integration in east Asia

As trade agreements within a global framework have become increasingly ...

Rajgopal Nidamboor

Up the ante of your conscious existence

It sounds cryptic, but is not as complex as it ...

Gautam Gupta

The ‘fake’ issue needs to be taken seriously

E-commerce players are witnessing unbelievable growth globally. Competition is increasing ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture