Banks Forecast Lower Gold Price in 2014


Fed tapering kept the Commodities market in a knot. Expectations about the timing and pace news produced many rallies. Barclays predicts an average price of $1,205 per ounce for gold this year, HSBC is the least bearish at $1,292 per troy ounce.

Auckland (I-Newswire) January 20, 2014 - Gold moved up on Friday and most U.S. equities moved down. A decline in consumer sentiment glorified the precious metals investment appeal as compared to the last five weeks. Gold prices for Gold Futures - Feb 14 (GCG4) +1.07% rose $11.70 per troy ounce, or 0.9%, to settle at $1,251.90 per troy ounce on the Comex division of the New York Mercantile Exchange. Construction of new U.S. homes fell in December but for all of last year had the strongest showing since 2007. December industrial production grew in line with the consensus forecast but consumer sentiment declined in January. Job openings at U.S. workplaces rose in November to the highest level since March 2008. A miss on the building permits and the consumer sentiment data proved a lifeline for gold. The actual reason which converted investors mind towards metal purchasing was that the new Fed Chief ,Janet Yellen, might stop or delay further the program of tapering of the central bank's bond-buying . Federal Reserve decisions do not rely on few figures only, FED have to see multiple factors.
Following data shows recent forecasts by some famous Investment banks. Average Gold price Forecast by six big banks is $1,209 per troy ounce this year.

Bank of America Merrill Lynch @ $1150, 18.6% lower than Average Price at 1413.

Barclays @ $1205, 14.7% lower.

Deutsche Bank @ $1141 , 19.2% lower.

HSBC @ $1292, 08.6% lower.

J.P. Morgan @ $1263, 10.6% lower.

UBS @ $1200, 15.1% lower.

Average stands at $1209, 14.5% lower than Average Price at 1413.
Deutsche Bank Forecast , as the data above shows, is most bearish of all, seeing an average price in 2014 of $1,141 an ounce, while HSBC is the least bearish at $1,292 per troy ounce.

Barclays predicts an average price of $1,205 per ounce for gold this year (GCG4 +0.34%) . Multiple factors are forcing gold prices down among them a lack of buyer interest is biggest. A stronger global economy and continued tapering in the Federal Reserve's bond buying and no sign of inflation are fading buyers interest away from gold.

Fed tapering kept the Commodities market in a knot. Expectations about the timing and pace news produced many rallies (downward and upward both). Commodities will be skyrocketing if the Fed stops its programme or even delays at its next meeting, schedule for Jan. 28 to 29, 2014.




































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January 20, 2014

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