Barclays & Scotiabank Forecasting Higher Gold Prices

NEW YORK - March 23, 2013 - PRLog -- At Scotiabank, it lowered its year 2013 price target for gold to $1,650 from $1,800. Analysts at a number of major banks cut their own gold price targets over the weekend because sentiment about the precious metal continues to cool this year. How high will silver go? Learn more >>  http://silverpricestoday.cc/

Gold fell to some six-month low last month, dropping underneath the key resistance level of US$1,600 an ounce. The precious metal that some investors view like a safe haven has been suffering because sentiment about the U.S. and global economy have enhanced this year.

Scotiabank cut its price target on gold to US$1,650 with regard to 2013 as a result, down from the earlier target of US$1,800. “The gold price faces headwinds with the strengthening of the U.S. dollar and a more positive sentiment for the global economic outlook,” Scotiabank experts wrote in a note.

HSBC, at the same time, decreased its target this year to US$1,700 an ounce, from US$1,760.

Analysts at Barclays, who slashed their forecast to US$1,646 from $1,778, make the lowest price target for gold.

“Macro uncertainty still has range to drive gold prices higher, but buyer fatigue has capped upside momentum,” Barclays analysts wrote, including that gold was “without a catalyst” this particular year. Gold Coins, Learn more >> http://www.silverpricestoday.cc/GOLD-COINS/

However don’t lose hope for gold at this time. While analysts are bearish on the precious metal this year, longer term, they say that many of the financial and structural issues that backed gold prices in the last decade remain - meaning it still has a good chance.

“The macro backdrop remains supportive with regard to gold, and markets dynamics have not really switched to the low gold price environment of the 1990s in which gross shorts scaled record highs, central banks had been sellers, and producer hedging was strong amid prices testing the cost of production,” authored Barclays analysts.

Scotiabank gave a similar note of endorsement for gold prices in the actual long-term. “We do believe that the structural issues surrounding global financial debt levels, longer-term inflationary expectations with quantitative easing in the background continue to support a higher gold price longer-term,” these people wrote.

So while it’s been a not really so good a year for gold, the image might start to improve later this year if all the economic confidence starts to sink again. How high will silver go? Learn more >>  http://www.silverpricestoday.cc/