Citi Raises Gold Price Forecasts for 2012-13

September 26, 2012 at 08:52

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Citigroup raised its gold price forecasts for 2012 and 2013, saying ongoing global economic issues are causing gold to remain a favored asset for investors.

“With continued concerns over the economic health in the developed world, safe-haven demand has seen renewed investor interest in gold-linked securities,” analysts at the bank said in a note dated Sept. 24.

Citi raised its year-end price forecasts for most precious and base metals.

The bank increased its 2012 price forecasts for gold, silver and platinum by about 2 percent, 5 percent and 1.5 percent, respectively, while it cut its earlier forecast for palladium prices by about 1.7 percent.

For 2013, Citi raised gold and silver price expectations by over 3 percent each, and those of platinum and palladium by over 6 percent each.

Illegal strikes in South Africa, mine closures and project delays were seen causing supply issues in the market for platinum and palladium, analysts at the bank said.