COMEX gold futures settled slightly higher on Friday, as the February 2013 contract finished up by $3.70, or 0.2%, at $1,705.50 per ounce. In doing so, the yellow metal extended its year-to-date gain to 8.9% – and thus remains on pace for its 12th consecutive annual advance.
With 2012 nearing its conclusion, many strategists have begun to publish their expectations for gold in 2013. The latest individual to do so was Hussein Allidina, head of commodity research at Morgan Stanley.
Allidina wrote in his note to clients that “We maintain our long-standing recommendation of overweight exposure to precious metals as conditions underpinning the gold bull-run largely remain in place.”
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The Morgan Stanley strategist went on to say that “Gold remains our preferred fundamental metal exposure heading into 2013. Gold has long been viewed as safe haven and store of value. However, in recent years, global fiscal and monetary developments have given gold a more prominent role as both a central bank reserve asset and one with a value akin to cash as the global financial system moves to adopt Basel III standards for capital in 2015.”
Allidina cited four key factors behind his bullish stance on gold – a weaker U.S. dollar, central bank buying of gold, ETF demand, and a recovery in Indian demand. As for a specific gold price target, he estimated that the yellow metal will average $1,853 per ounce in 2013 – 8.6% above its current level.
Crocodile Gold’s Revenue Rises 32%, Reiterates Guidance
- Cash flow from operations climbed from $4.9 million in the second quarter to $32.5 million
- Reiterated full-year production guidance of 40,000-50,000 ounces for Northern Territory Operations in Australia
- Affirmed full-year production guidance of 82,000-87,000 ounces for the Fosterville Mine and 69,000-74,000 ounces for the Stawell Mine, both in the Australian state of Victoria