India's gold consumption likely to recover: HSBC

Fri Jan 4, 2013 9:17am 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

   

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:
Photo

After wave of QE, onus shifts to leaders to boost economy

DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.

Barack Obama in India

Reuters Showcase

Coal Mining

Coal Mining

India to open coal to commercial mining firms soon, minister says  Full Article 

RBI Loan Rules

RBI Loan Rules

RBI relaxes overseas loan recast rules   Full Article 

E-commerce Firms

E-commerce Firms

Amazon, e-commerce rivals fuel commercial property boom in India  Full Article 

Growth Forecasts

Growth Forecasts

Indian economic growth forecasts pegged back, despite rate cuts: Reuters Poll.  Full Article 

Uber is Back

Uber is Back

Uber back in Delhi; govt says must await approval.  Full Article 

Markets at Record

Markets at Record

Sensex rises to record after ECB stimulus programme.  Full Article 

Pharma Sector

Pharma Sector

Ipca Labs hit by FDA ban on plant for standard violations.  Full Article | Related Story 

Forex Reserves

Forex Reserves

India FX reserves at record high as RBI fortifies defences  Full Article 

QE for Euro Zone

QE for Euro Zone

ECB launches 1 trillion euro rescue plan to revive euro economy.  Full Article 

Reuters India Mobile

Reuters India Mobile

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