HSBC lifts 2013 gold price forecast on higher physical demand
REUTERS - HSBC Global Research raised its 2013 gold price forecast and said physical demand is becoming a major driver for the yellow metal.
The bank lifted its gold price outlook for this year to $1,446 per ounce from $1,396, and kept its 2014 forecast unchanged at $1,435 an ounce. Spot gold was trading at $1,330.66 at 17:36 GMT on Thursday.
"Physical demand for jewelry, coins, and bars from China, especially, are supportive and becoming a key driver," HSBC said in a note on Thursday.
The bank said investment demand for gold will remain weak as gold's use as a safe haven ebbs.
Expectations that the U.S. Federal Reserve will reduce stimulus measures will continue to weigh on the gold market, HSBC said.
"We expect gold's near-term direction to be highly data dependent and is likely to be volatile."
The prospect of a stronger U.S. dollar as a result of Fed tightening is likely to present headwinds to further gold rallies, the bank said.
(Reporting by Koustav Samanta and Anupam Chatterjee in Bangalore; Editing by Carol Bishopric)
- Tweet this
- Share this
- Digg this
Trending On Reuters
Islamic State militants said they had beheaded a second Japanese hostage, journalist Kenji Goto, prompting Prime Minister Shinzo Abe to vow to step up humanitarian aid to the group's opponents in the Middle East and help bring his killers to justice. Full Article | Video