HSBC cuts gold, silver price forecasts for 2013, 2014

Sat Apr 27, 2013 1:08am IST

A woman eats ice cream as she looks at the display in the window of a Gold Standard jewellery store that specializes in purchasing raw gold and silver in New York April 15, 2013. REUTERS/Lucas Jackson

A woman eats ice cream as she looks at the display in the window of a Gold Standard jewellery store that specializes in purchasing raw gold and silver in New York April 15, 2013.

Credit: Reuters/Lucas Jackson

Related Topics

REUTERS - 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 ounce from $1,700 and the 2014 price outlook to $1,600 per ounce from $1,720.

The bank, however, expects gold prices to stabilize after the recent rout as retail demand for gold lends support with rising jewelry 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 in a note.

HSBC also cut its 2013 silver price forecast to $26 per ounce from $33 and the 2014 price outlook to $27 per 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.

(Reporting by Shrutee Sarkar in Bangalore; Editing by Kenneth Barry)

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

Healthcare Corruption

REUTERS SHOWCASE

Short of Expectations

Short of Expectations

Apple revenue lags Street's view despite strong China growth  Full Article 

Mircosoft Results

Mircosoft Results

Microsoft revenue rises, profit falls as Nokia absorbed  Full Article 

Deal Talk

Deal Talk

Exclusive - Lupin, U.S. firms weigh bids for GSK's mature drugs: sources  Full Article 

Relief For Sahara

Relief For Sahara

Supreme Court could allow Sahara boss to conduct asset sale talks, company says.  Full Article 

Classifying Banks

Classifying Banks

RBI to start announcing too-big-to-fail banks in Aug 2015  Full Article 

Food Scandal

Food Scandal

Starbucks, Burger King dragged in as China food scandal spreads.  Full Article 

Reuters India Mobile

Reuters India Mobile

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