Press Esc to close
Saturday 10 December 2016
News updated at 12:50 AM IST
Weather
Max: 28.9°C
Min : 18.4°C
In Bengaluru
Partially cloudy

India's gold consumption likely to recover: HSBC

Jan 4, 2013, REUTERS -
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
Artistes perform during the International Gita Mahotsav-2016 in Kurukshetra...

Artistes perform during the International Gita Mahotsav-2016 in Kurukshetra...

Tibetan spiritual leader, the Dalai Lama at the inauguration of a four-day seminar on legacy...

Tibetan spiritual leader, the Dalai Lama at the inauguration of a four-day seminar on legacy...

Two rats gather in a shrub at the Saint Jacques Tower park, in the center of Paris...

Two rats gather in a shrub at the Saint Jacques Tower park, in the center of Paris...

A wrecked bus after meeting with an accident on the Delhi-Agra National highway due to fog...

A wrecked bus after meeting with an accident on the Delhi-Agra National highway due to fog...

Smoke rises from the house where two Lashkir-e-Toiba (LeT) militants were hiding...

Smoke rises from the house where two Lashkir-e-Toiba (LeT) militants were hiding...

Huge cash seized by the Income Tax department after it conducted searches in Chennai...

Huge cash seized by the Income Tax department after it conducted searches in Chennai...

The carcass of elephant Sidda being shifted in a lorry for the burial at the Manchanbele dam...

The carcass of elephant Sidda being shifted in a lorry for the burial at the Manchanbele dam...

A heater is placed in the enclosure of a tiger to keep big cat warm during cold day at Sanjay...

A heater is placed in the enclosure of a tiger to keep big cat warm during cold day at Sanjay...

Umpire Paul Reiffel is helped by support staff after he was hit by ball during fourth test...

Umpire Paul Reiffel is helped by support staff after he was hit by ball during fourth test...

TMC members during a protest to observe a 'Black Day' against demonetization...

TMC members during a protest to observe a 'Black Day' against demonetization...

Like us on Facebook

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523