Zee Media Bureau
New Delhi: HSBC has lowered its gold forecast for 2013 and 2014 on Friday, as per a news wire report.
HSBC said the recent tumble in prices for the yellow metal has dealt a severe blow to investor confidence, which may take many months to restore.
The bank cut its 2013 gold price forecast to USD1,542 per ounce from USD1,700 and the 2014 price outlook to USD1,600 per ounce from USD1,720.
The bank, however, expects gold prices to stabilize after the recent rout as retail demand for gold lends support with rising jewelry and gold coin purchases from Asia.
"Lower prices attract greater buying, especially in India and China. Based on the fragmented nature of this buying, it may take months for this new demand to feed into prices," HSBC analyst James Steel said in a note.
HSBC also cut its 2013 silver price forecast to USD26 per ounce from USD33 and the 2014 price outlook to USD27 per ounce from USD31 earlier.
The bank said factors limiting price appreciation for silver were likely to be growing mine output.
Mine production has increased steadily for more than a decade and continues to grow, notably in Latin America and China, the bank said.
With Agency Inputs