HSBC was the latest investment bank to raise its gold price forecasts and is now calling for gold to reach $2,025 per ounce in 2012.
In the firm’s report, HSBC analyst James Steel wrote that “Despite gold’s high volatility and wide price swings, we remain positive on bullion. The steep rise to $2,025/oz for 2012 is based primarily on heightened investor anxieties and the paucity of alternative safe-haven assets.”
HSBC went on to say that ““We believe gold’s 10-year bull market remains firmly intact, despite high volatility, with prices up 29 percent already this year…The euro zone debt crisis, currency wars, and deep uncertainty among investors are among the factors driving prices higher…Gold is benefiting from growing investor anxiety about ineffective government policies, unsustainable government debt levels, and the potential for a further global slowdown.”
The firm also lifted its 2011 gold price forecast to $1,630 from $1,590 per ounce, and its 2013 estimate to $1,850 from $1,550 per ounce. For 2012, the firm’s prior estimate was $1,625 per ounce.
Although increases in mine output and scrap supplies present a headwind for the rally in gold, they “seem unlikely to reverse it,” according to Steel.
Extorre Gold Mines Completes Resource Drilling at Zoe
- Recent drill results include further high gold-silver grades from the Zoe discovery.
- Assays included 2.0 meters at 13.0 grams per tonne (g/t) gold and 457.6 g/t silver at hole MD1300.
- Drilling with at least 5 rigs will continue to test high priority targets on the Zoe structure and elsewhere on the property.