Firm also raises price outlooks for 2013, 2014
bank HSBC cut its 2012 average gold
price outlook for 2012, but raised its 2013 and 2014 forecasts on solid investor demand and high commodity prices.
The bank cut its 2012 price outlook to $1,700 per ounce from $1,760 in light of price weakness earlier this year and raised its 2013 forecast to $1,850 from $1,775. It also raised its 2014 price forecast to $1,775 from $1,750.
"We remain bullish on gold
, and we expect prices to reach $1,900 an ounce by year-end," HSBC chief commodity analyst James Steel said in a note to clients.
"Although the first rush of QE3-inspired gold
buying is over, we believe that the Fed's open-ended commitment to easing until U.S. labor markets improve will support gold
well into 2013," Steel said
"The Federal Reserve's third round of asset purchases via quantitative easing (QE3) -- and other central banks' policy easing measures are measurably boosting gold
investment demand," the firm said
. "For investors who expect QE3 will fail to jump-start economic growth, gold
offers an attractive quality asset. For investors concerned about the inflationary impact of QE3, gold
appeals as an inflation hedge."Read Article