Morgan Stanley cuts 2013, 2014 gold, silver price forecasts

Tue Jun 25, 2013 3:27pm IST

Gold rings are displayed for sale at a Bao Tin Minh Chau gold shop in Hanoi June 21, 2013. REUTERS/Kham

Gold rings are displayed for sale at a Bao Tin Minh Chau gold shop in Hanoi June 21, 2013.

Credit: Reuters/Kham

Related Topics

REUTERS - Morgan Stanley lowered its gold and silver price forecasts citing the possibility of reduced U.S. Federal Reserve monetary stimulus or outright withdrawal from the current quantitative easing program.

"With investor demand for safe-haven assets waning against the backdrop of a strengthening U.S. dollar and rising U.S. bond yields, market conditions for gold and silver have become markedly less favourable," the bank said in a note.

The bank cut its 2013 gold price forecast by 5 percent to $1,409 an ounce and its 2014 estimate by 16 percent to $1,313.

Morgan Stanley lowered its 2013 silver price forecast by 14 percent to $23.39 an ounce and its 2014 estimate by 29 percent to $21.01 an ounce.

The bank maintained its bullish view on palladium, raising its 2013 price forecast by 1 percent to $743 an ounce, as it expects auto sector demand to remain robust.

Morgan Stanley also downgraded the whole base metal sector saying growing oversupply and excess capacity was cause for caution.

The bank, however said, the market consensus on downside risks to copper prices was too bearish, and the metal remains its preferred exposure in a challenging sector.

The bank lowered its 2013 nickel price forecast by 7 percent to $7.23 per pound, tin by 7 percent to $10.08 per pound, copper by 3 percent to $3.42 per pound and aluminum by 2 percent to $0.89 per pound.

(Reporting by Shrutee Sarkar in Bangalore)

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

Election 2014

REUTERS SHOWCASE

Telecom Sector

Telecom Sector

RComm to raise mobile call tariff by up to 20 percent  Full Article 

Chinese Economy

Chinese Economy

China economic growth slows to 18-month low in first quarter  Full Article 

New Direction

New Direction

CEO Nadella pushes data culture at Microsoft.  Full Article 

Strong Sales Volume

Strong Sales Volume

Small is beautiful for Coca-Cola as volumes soar in China  Full Article 

Breakingviews

Breakingviews

Diageo throws money at Indian empire-building  Full Article 

Toyota's Performance

Toyota's Performance

After two bumper years, Toyota braces for shift to slower growth.  Full Article 

Reuters India Mobile

Reuters India Mobile

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