Precious metals outlook boosted

Instead of a multi-year downtrend, with disinvestment putting pressure on precious metals prices over time, many of the variables that drive gold prices (lower in 2013) have already reset to an extent,” says Nomura.

The Japanese financial holding company boosted its gold target to $1,335 this year (it’s at $1,338 right now) and $1,460 in 2015 from $1,138 and $1,200, respectively. Silver’s target is raised to $21.52 from $16.25 (silver’s at $21.21 right now).

ETF outflows are slowing, speculative short positions have cooled, and producers are cutting back new projects. “Long-term demand support from Asian nominal income growth, an evolving post-QE macroeconomic environment and lower disinvestment potential move our gold equilibrium model to now expect price increases over the next three years.”The team also has a variant take on what might have caused last year’s big decline in price, attributing it maybe to an arbitrage opportunity between Chinese and London pricing. “The potential for such negative supply swings has far less potential impact than in late 2012.”

Gold futures closed 1% lower on Friday, suffering from their biggest one-day point and percentage loss in more than a week, after a closely-watched jobs report signaled stronger-than-expected employment trends, dulling the metal’s investment appeal. Gold for April delivery fell $13.60, or 1%, to settle at $1,338.20 an ounce on the Comex division of the New York Mercantile Exchange. For the week, prices held onto a gain of around 1.3%.

Generally, trend remains up.

You may like the following related posts
Global Investors Now Bullish on Europe, Inflation and Gold Global investors are significantly more positive on the outlook for Europe after the European Central Bank’s announcement of quantitative easing to ...
Investment in Gold Now More Lucrative While both equities and oil retreated from the beginning of the week, gold followed up a strong start with another rally on Tuesday, taking out the ke...
Precious metals outlook boosted Instead of a multi-year downtrend, with disinvestment putting pressure on precious metals prices over time, many of the variables that drive gold pric...
Gold Prices Trending Higher Last Friday, gold futures advanced for a third-straight session in a row to end up nearly 2% for the week. Prices for the yellow metal had risen by m...
Gold prices seen higher in the weeks ahead Gold prices are expected to rise in the coming weeks building strength on the previous weeks' gains. On Friday, the yellow metal tallied a five-week ...
Gold prices expected to rise next week Spot gold finished 1.1% higher at $1,238 an ounce on 3 January. Prices inched up 0.3% a week ago, when the metal remained on track to log its first an...

Leave a Reply

Your email address will not be published. Required fields are marked *