HSBC lifts 2013 gold price forecast on higher physical demand
HSBC Global Research raised its 2013 gold price forecast and said physical demand is becoming a major driver for the yellow metal.
The bank lifted its gold price outlook for this year to $1,446 per ounce from $1,396, and kept its 2014 forecast unchanged at $1,435 an ounce.
"Physical demand for jewelry, coins, and bars from China, especially, are supportive and becoming a key driver," HSBC said in a note on Thursday.
The bank said investment demand for gold will remain weak as gold's use as a safe haven ebbs.
Expectations that the US Federal Reserve will reduce stimulus measures will continue to weigh on the gold market, HSBC said.
"We expect gold's near-term direction to be highly data dependent and is likely to be volatile."
The prospect of a stronger US dollar as a result of Fed tightening is likely to present headwinds to further gold rallies, the bank said.
Copyright @ Thomson Reuters 2013