HSBC says India's gold consumption likely to recover

Thu Jan 3, 2013 10:57pm IST

An employee shows dividing a gold Combibar at a plant of gold refiner and bar manufacturer Valcambi SA in the southern Swiss town of Balerna December 20, 2012. REUTERS/Michael Buholzer

An employee shows dividing a gold Combibar at a plant of gold refiner and bar manufacturer Valcambi SA in the southern Swiss town of Balerna December 20, 2012.

Credit: Reuters/Michael Buholzer

Related Topics

Stocks

   
Coal Mining In The Punjab

Coal Mining In The Punjab

In Choa Saidan Shah miners dig coal with crude pick axes and load it onto donkeys to be transported to the surface earning a team of 4 workers around $10 to be split between them.  Slideshow 

REUTERS - Major bullion bank HSBC Holdings Plc cut its 2013 average gold price after factoring in a 2012 year-end price of $1,675 an ounce.

The bank cut its 2013 price forecast to $1,760 an ounce from $1,850. It kept its 2014 gold forecast at $1,775 and introduced a 2015 forecast of $1,675 an ounce.

The gold market is likely to trend higher in 2013 based in part on more positive underlying supply/demand fundamentals and Indian consumption is likely to recover based in historical consumption patterns.

Macro fund liquidation and uncertainty over the impact of the U.S. "fiscal cliff" led traditional gold investors to shift out of bullion and move to the "sidelines" in late 2012, HSBC analyst James Steel said in a note to clients. The "fiscal cliff" was a term used to describe severe tax rises and spending cuts that were set to take effect at the beginning of 2013.

"We believe that gold prices will recover this year and retain a pronounced bullish posture," Steel said.

The bank left its 2013 and 2014 silver, platinum and palladium forecasts unchanged. It introduced a 2015 forecast of $28 per ounce for silver, $815 for platinum and $825 for palladium.

"After weakening in 2012, we are moderately bullish on silver prices this year due to a recovery in manufacturing demand," he said.

The platinum group metals are likely to rally in 2013, principally due to supply tightness, Steel added.

(Reporting by NR Sethuraman in Bangalore.; Editing by John Wallace and Andre Grenon)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

HCL Tech Results

HCL Tech Results

Q4 dollar revenue disappoints investors, shares fall  Full Article 

Fed Policy

Fed Policy

Fed presses forward with bond buying, cites uptick in inflation.  Full Article 

Q2 Profit Slips

Q2 Profit Slips

Samsung sees tough second half  Full Article 

Chinese Economy

Chinese Economy

China should set lower 2015 GDP growth target of 6.5-7 percent - IMF  Full Article 

Default Imminent

Default Imminent

Argentina fails to reach debt agreement   Full Article 

Economy Reboots

Economy Reboots

U.S. economy back on track with strong second-quarter rebound  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage