One More Bank Cuts Gold, Silver Price Outlook


Societe Generale lowered its forecast for the average price of gold and silver for 2013. The bank cited the recent weakness in gold prices and a “lack of bullish triggers.”

The bank cut its forecast for the average gold price by 5.6% to $1,700 a troy ounce from its previous forecast of $1,800/oz. It cut its forecast for the average silver price by 8.8% to $31/oz from $34/oz.

However, the physical market has already responded “positively” to the price fall with bargain hunting appearing in a number of physical purchasing regions and keeping gold prices relatively stable and away from free-fall.

Ahmedabad market has gone to a small premium over international prices, with dealers expecting a fresh surge in buying into recent price weaknesses.

Also, turnover on the Shanghai Gold Exchange soared to a record 22 tons M, adding the daily average turnover volume was 8 tons last year.

Gold futures finished lower Wednesday, pulling back after a sizable gain in the previous session, as a stronger dollar and a climb in U.S. equities lured some investors away from the precious metal.

Gold for February delivery finished down $6.70, or 0.4%, to settle at $1,655.50 an ounce on the Comex division of the New York Mercantile Exchange.

The precious metal had jumped $15.90 an ounce, or 1%, to settle at $1,662.20 on Tuesday, amid signs of increased demand in Asia.

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