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.
- Read more: Goldman Sachs Cuts Gold Price Forecast
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.