HSBC bullish on gold in coming 3 years, citing 5 reasons

UNITED STATES September 03 2014 11:35 AM

 

NEW YORK (Scrap Register): Gold is likely to expect to trade in a range between $1,150 an ounce to $1,350 an ounce for the rest of this year as the metal is searching for a new equilibrium after last year’s price plunge, which ended the more than decade-long bull run, said the British Bank HSBC.

 

“The massive gold-exchange-traded funds (ETFs) outflows of 2013 –which were instrumental in driving prices lower – have largely abated. Another positive is that net long positions on the Comex are rebuilding. Other factors supporting prices are that mine production gains are plateauing, scrap supplies are down and central bank demand is steady, said analysts at HSBC.

 

The British bank left this year average price forecast at $1,292 an ounce and listed 2015 and 2016 forecasts of $1,310 and $1,345 an ounce.