Two bullion banks lowered their gold price forecasts for 2012 even though they maintained their bullish view, after the metal’s decline last week briefly sent it into a bear market.
HSBC and Barclays both cut their 2012 gold price targets by over $100 an ounce after the metal posted a gain of 10 percent last year to extend its run to an 11th consecutive year. It was, however, its smallest annual gain in three years.
HSBC’s chief commodity analyst James Steel slashed his 2012 forecast to USD 1,850 an ounce from his previous target of USD $2,025, citing a weak euro, liquidation related to equities’ losses and lackluster physical demand from emerging markets.
Steel also kept its 2012 silver view unchanged at USD 34 an ounce but he cut his price forecasts for platinum and palladium.