may day gold won\t hit 2000
Last Updated : GMT 05:17:37
Emiratesvoice, emirates voice
Emiratesvoice, emirates voice
Last Updated : GMT 05:17:37
Emiratesvoice, emirates voice

May Day: Gold won\'t hit $2,000

Emiratesvoice, emirates voice

Emiratesvoice, emirates voice May Day: Gold won\'t hit $2,000

Abu Dhabi - Arabstoday

Gold price continued to slump for the third consecutive month in April, and a sharp decline in demand from India, the world’s largest gold consumer, bodes ill for the yellow metal’s fortunes. That factor, coupled with improved economic data released by the US Federal Reserve yesterday, influenced major bullion bank HSBC to cut its average gold price forecasts for 2012 and 2013. The bank cut its 2012 price forecast by 5 per cent to $1,760 per ounce from $1,850/oz and 2013 price forecasts to $1,775/oz from $1,800/oz. This is the second time that HSBC has slashed its gold price forecast this year, with the bank earlier slashing its price forecast from $2,025 an ounce to $1,850/oz in early January on a weak euro, liquidation related to equities’ losses and lacklustre physical demand from emerging markets. With the world economy slowly but surely emerging out of the financial mess it dug itself in, most major economies (barring those in the Euro Zone) are well on track to recovery, a fact that diminishes the safe haven appeal of gold, and encourages investors back into riskier assets like equity. The precious metal has failed to rally this year despite the fact that bond yields in some of the euro zone’s economies are soaring to unsustainable levels, and the economies of countries like Spain have now officially slipped back into recession. At $1,664 per ounce this morning (10am UAE time, 6am GMT), gold is more than 13 per cent below its all-time high of $1,920/oz that it made in September last year, and analysts now believe that the elusive $2,000/oz-mark will not be challenged this year or the next. Nevertheless, despite painting a bleak outlook, HSBC’s chief commodity analyst James Steel noted that gold price could see a reversal of sorts in the second half of the year. “Despite recent weakness, we maintain an upwards bias for gold and expect prices to recover in the second half of this year,” he said in a note to clients. On the other hand, analysts at Bank of America and Goldman Sachs continue to believe that the recent positivity in US economic data may not last long, and that gold will benefit from any future economic weakness. Commenting on the GDP data, analysts at Bank of America noted that nearly half the growth came from auto production that is “unlikely to repeat in future quarters.”  The firm added that “the soft nature of today’s GDP report reinforces our below consensus growth outlook.” Goldman Sachs analysts too maintain a cautious outlook on US economy, and recently said that expected weakness in the forthcoming quarters hold positive implications for the gold price, especially if the Fed resumes its quantitative easing programme. Analysts at the firm expect the price of gold to resume its ascent “as subdued US growth reduces the market’s expectations of real rates and perhaps, most importantly and counter to much of the current market feeling, suggests that the anticipated North American growth slowdown will see a return by the US Fed to some form of quantitative easing.” Goldman reiterated its gold price target of $1,840/oz, but that makes it clear that the earlier forecasts of gold at $2,000 per ounce aren’t going to be met in a hurry.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

may day gold won\t hit 2000 may day gold won\t hit 2000

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

may day gold won\t hit 2000 may day gold won\t hit 2000

 



GMT 05:06 2024 Tuesday ,06 February

New hunt for flight MH370 gets under way

GMT 16:17 2018 Thursday ,30 August

Five Saudi women pilots granted GACA licences

GMT 23:58 2011 Saturday ,05 November

Ways to Update Your Furniture

GMT 13:14 2014 Saturday ,25 October

Alaa Abdel Fattah's appeal trial to be held Monday

GMT 05:26 2017 Thursday ,19 January

Solar energy making rapid progress in the region

GMT 12:55 2017 Tuesday ,26 December

Pope pleads for migrants at Christmas mass

GMT 10:29 2017 Saturday ,14 October

IMF chief urges more support for global trade

GMT 09:31 2017 Tuesday ,05 September

Battling to thwart diesel bans

GMT 11:35 2017 Saturday ,07 October

US tax overhaul 'desperately needed'

GMT 07:34 2017 Wednesday ,20 September

Death toll in Mexico quake rises to 248

GMT 13:47 2011 Monday ,01 August

World’s biggest Ramadan lantern lit up in Gaza

GMT 14:20 2015 Saturday ,15 August

'Deadliest Catch' star Tony Lara dead at 50

GMT 12:50 2012 Tuesday ,03 July

Leila Trabelsi appears in media

GMT 22:06 2012 Wednesday ,10 October

Gaza rockets strike Israel, no injuries
 
 Emirates Voice Facebook,emirates voice facebook  Emirates Voice Twitter,emirates voice twitter Emirates Voice Rss,emirates voice rss  Emirates Voice Youtube,emirates voice youtube  Emirates Voice Youtube,emirates voice youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

emiratesvoieen emiratesvoiceen emiratesvoiceen emiratesvoiceen
emiratesvoice emiratesvoice emiratesvoice
emiratesvoice
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
emiratesvoice, Emiratesvoice, Emiratesvoice