Analysts at some of the world’s major banks are busy cutting their short term gold price forecasts following the recent steep plunge lower for the precious metal which saw a 10 percent one day crash which hit the market mid April.
Latest Gold Price
Gold rose by 1.1 percent to $1,448.28 an ounce in trading this morning heading for its biggest weekly gain since October 2011, after a surge in physical demand in Asia helped pluck the metal from a 2 year trough.
Gold prices plunged 9.1 percent on April 15, the most since February 1983 falling to $1,361 an ounce mid April, their lowest level in two years.
Banks Gloomier on Gold
Yesterday, Swiss bank UBS cut the bullion dealer’s one month gold price forecast by $300 per ounce to $1425 – just below current levels. UBS’s three month gold price forecast is now at $1500 per ounce, down from $1850 previously.
Last Friday Canada’s RBC bank cut its 2013 gold price forecast down to $1450 from $1700 per ounce. RBC also cut its stock price targets for major North American gold mining companies by up to 30 percent.
“Whilst there may have been a concerted effort to short the metal, in our view this was only successful due to a fundamental lack of conviction behind gold in any of its key markets, including Asia, the principal source of physical demand,” according to RBC analyst Jonathan Guy.
London bullion market maker Barclays meantime cut its 2013 average gold price by 10 percent to $1483 per ounce.
“Gold and silver, the front runners since 2009, are likely over the next few years to be among the weakest of all. We see the outlook in the near term as fragile,” said Barclays in a note to clients.
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Banks cut gold price forecasts following the recent steep plunge lower
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