Deutsche Bank cuts gold, silver price forecast


On Tuesday, Deutsche Bank cut both its short-term and long-term forecasts for most precious metals, citing slower-than-expected recovery in China.

The bank cut its outlook for gold for 2013 by 6.7% to $1,431 an ounce and slashed the 2014 forecast by 10.8% to $1,338. For the third quarter of 2013, the analysts see gold prices around $1,350, down 10% from their previous forecast.

Goldman Sachs cut its gold and silver price forecast much more drastically, following HSBC’s precious metals downgrades of the last week.

For silver, Deutsche Bank lowered the forecast by 17.3% to $21.40 an ounce for the third quarter of 2013. The annual forecast fell 9.9% to $24.10.

An increasingly bullish outlook for the U.S. dollar and a reallocation among global investors from fixed income into equities are the main reasons for the most recent precious metals forecasts revisions of a number of major international banks.

To re-afirm investor’s sentiment, today U.S. stock futures added to gains after durable goods orders rose more than expected. Durable goods orders for May rose 3.6% on the month mainly on large airplane orders, topping expectations of a 3.2% increase.

Elsewhere, Credit Suisse also lowered its gold and silver price forecast on Monday. The bank set its new short term target for gold at $1,150 a troy ounce, from $1,300 an ounce previously. The annual forecast for gold prices was cut to $1,250 an ounce from the previous $1,450 an ounce. The new figures are in line with the projections of Goldman.


Please enter your comment!
Please enter your name here