Press Esc to close
Monday 29 May 2017
News updated at 3:06 PM IST

India's gold consumption likely to recover: HSBC

Jan 4, 2013, REUTERS - 9:31 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.  Credit: 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.

Go to Top

Photo Gallery
Vermicelli

Vermicelli

Curfew in Downtown Srinagar

Curfew in Downtown Srinagar

Ramadan in Delhi

Ramadan in Delhi

Grand champion Hakuho,

Grand champion Hakuho,

‘Eduverse’ Jnana Degula the premier education expo by DH, PV

‘Eduverse’ Jnana Degula the premier education expo by DH, PV

Protest in Sohna

Protest in Sohna

Flooded Colombo

Flooded Colombo

Formula One Grand Prix

Formula One Grand Prix

CBSE declares results

CBSE declares results

Balija Community Bruhath Samavesha

Balija Community Bruhath Samavesha

Like us on Facebook

Copyright 2017, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523
Powered by Yodasoft Technologies Pvt. Ltd.