On Wednesday, Societe Generale revised on the downside its 2013 gold price forecast and respectively silver among precious metals. Among the base metals, the bank cut aluminium and copper forecasts in its latest Commodities Review note.
- Read more: HSBC Revises Gold Forecast, Remains Bullish
However, the bank raised its 2013 Brent crude price forecast. Is oil the new gold?
The bank lowered its gold outlook for 2013 to $1,500 per ounce and for 2014 to $1,400 per oz. It said it did not believe there is enough latent interest in gold for the price to overcome the resistance that is now provided by the trendline from the bull market that started in late 2008 and which was broken in January. The current upward leg looks more like gold’s last stive to hold on before a bear market develops, according to the bank’s analysts.
Societe Generale also cut its 2013 silver price outlook to $27 per oz and 2014 to $26 per oz. The bank noted that silver is essentially an industrially driven metal with precious characteristics, that tends to rely on gold for any strong upward runs.
However, the bank doe snot rule out the possibility for occasional rallies in the course of the year. Economic developments may influent investors and traders risk appetite in either direction. Silver could easily rally towards $35 in an upward gold move, the bank says.
The 2013 Brent crude price outlook, on the contrary, remains balanced and constructive to bullish in the bank’s forecast. Brent price forecast for 2013 was revised to $112 a barrel from $110.
