The short video below outlines what large banks think about gold for 2013-2014. Will the 12 year bull market continue and make yet another high or will 2013 be a rest year? All of the source information for this video is posted below, enjoy!
UBS Leaves 2013 Gold Forecast At $1,900/Oz
UBS is retaining its forecast for gold to rise to an average price of $1,900 an ounce in 2013, the bank said Wednesday.
The bank’s 2013 silver forecast is $36.80 an ounce, not much different than UBS’ prior expectation of $36.90. UBS lowered its forecasts for platinum group metals, although it still looks for average prices to be higher than current levels. Platinum is now expected to average $1,740 an ounce next year, compared to its previous forecast of $1,800. Palladium is seen at $780, compared to $825 previously.
“We remain gold bulls,” UBS said in a commodities overview. “Ongoing uncertainty around U.S. fiscal issues, together with the view that major central banks will maintain loose monetary policies for longer, are key supports of our outlook. We also expect that the politicians will prevent the U.S. from going over the (fiscal) cliff, with an 11th-hour agreement.”
Best Commodities for 2013, Morgan Stanley
According to Morgan Stanley, the platinum group of precious metals will continue to benefit from a positive outlook in 2013, though there are certain concerns toward base metals such as copper.
In 2013 the price of gold is expected to rally about $1,853 per ounce. An average of $35 is predicted for silver, while platinum is expected to sit at around $1,715 per ounce.
In its 2013 outlook for commodities release, the financial firm announced that structural and supply limited commodities will be preferred among investors. Demand and supply were affected by the rise in prices through the years. This drove a number of investors to plead for an end of this never-ending commodity “super cycle”. Yet, these desires are irrational.
Inside Citigroup Inc.’s 2013 Precious Metals Outlook
Gold’s average price in 2012 fell at $1,679/oz, and Citi expects the yellow metal to add to that tally for the coming year. Citing President Obama’s re-election and the continuation of a “dovish monetary policy,” the financial juggernaut has pegged gold to average $1,750/oz for next year, a gain of 4.2%. But Citi also predicts the metal to contract in 2014, back down to $1,655. Note that this would be the first annual loss for gold prices in 13 years.
Barclays Trims 2013 Gold, Platinum and Palladium Outlook
Barclays PLC (BCS) Friday trimmed its outlook on gold prices for 2013, but said it still expects the metal to start the year on a firm footing. The bank now sees gold averaging $1,815 an ounce next year, down 2.4% on its previous forecast. It kept its silver forecast unchanged at $32.50/oz. “We retain a positive view on the gold market, but given gold’s outperformance during risk on intervals and our forex strategists expectation for the dollar to strengthen beyond three months, we are revising down our forecast for 2013 modestly, to $1,815/oz,” the bank said. Since gold is priced in dollars, it becomes more expensive to other currency holders when the greenback strengthens.
Gold Could Hit $5,000 in 2 Years
Gold’s 12-year rally still has legs, and the precious metal should reach $3,000 to $5,000 an ounce within the next two to three years, says MacNeil Curry, chief rates and currency technical strategist at Bank of America Merrill Lynch. It’s really just a matter of market dynamics that will push gold there, he tells CNBC. There are three phases in a long-term commodity bull market, Curry says. The first is accumulation, the second is increasing public participation and awareness and the third is excess or speculation.
The third phase hasn’t hit yet, Curry says. “We need to see that phase transpire, and that takes us up significantly higher from where we’ve gone so far.” Gold will rise to $3,000 to $5,000 when the third gear finally kicks in, pushing prices “significantly higher than most people expect,” Curry says. Spot gold traded at $1,694.20 late Thursday. A move to $5,000 would represent an almost three-fold jump from that level.