India's gold consumption likely to recover: HSBC
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)
- Tweet this
- Share this
- Digg this
- Three major nations absent as China launches World Bank rival in Asia
- Microsoft sales beat Street hopes, cloud profits up
- China's Xiaomi shifts some smartphone user data out of Beijing on privacy concerns
- Google commits to $1 billion in long-term office leases
- Google launches new email service dubbed "Inbox"
The latest Reuters poll of 20 economists taken over the past week shows Asia's third-largest economy will likely grow 5.5 percent this fiscal year and 6.4 percent the next, slightly better than 5.3 percent and 6.3 percent expected in the July poll. Full Article
Kalki Koechlin on her role as a disabled girl in “Margarita, With a Straw” Full Article